OPEC extends it's production cuts
...to offset the surge in US-produced oil. Here is the chart comparing Saudi, Russian and US oil production:
OPEC+ consists of 22 oil-producing nations plus Russia. Saudi is the largest producer of the group, followed by Russia.
As you can see from the chart, Saudi (the white line), managed to cut production by about 2 million barrels a day from 2023. But this was offset by a surge in American supply. OPEC+ is worried that if it doesn't maintain production cuts, the oil price will tank.
Unfortunately, the Federal Reserve and other central banks were hoping for an oil price drop that would allow inflation to fall and interest rates to be cut in an election year.
It is increasingly looking like it will be harder for the Fed to cut rates this year.