OPEC+ has decided to extend oil supply cuts in the first half of the year, leading to tension in global markets and potential price hikes. This decision was reached during an online meeting on Wednesday, as reported by Bloomberg.

The group of key members, led by Saudi Arabia, recommended maintaining the current policy. This means that production cuts of around 2 million barrels per day will remain in effect until the end of June.

These production cuts, combined with resilient fuel demand, have pushed oil prices to nearly $90 per barrel in London, marking the highest level this year. Ongoing conflicts in the Middle East also bolster oil futures, according to Bloomberg.

According to the International Energy Agency, by maintaining these restrictions, OPEC+ is poised to create a slight deficit in global oil markets throughout the second quarter. This deficit could potentially drive oil prices up to $100 per barrel, warned JPMorgan Chase & Co.

The Joint Ministerial Monitoring Committee will continue to carefully assess market conditions, with OPEC+ members reaffirming their readiness to take additional measures as necessary, according to a statement from the group.

However, not all OPEC+ countries have adhered to the agreed-upon production cuts. Iraq and Kazakhstan have failed to implement the agreed reductions. Russia, which jointly leads OPEC+ with Saudi Arabia, has also shown mixed results.

While the country belatedly implemented promised cuts in crude oil production from the previous year, its execution of agreed export cuts for this year remains less clear.

Although shipments of certain fuel types, such as diesel, have decreased, this may be linked to Ukrainian drone strikes on Russian oil refineries.

OPEC+ will convene in Vienna on June 1st to decide whether to continue supply cuts in the second half of the year.

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