Oil prices slipped late Thursday as the Organization of the Petroleum Exporting Countries suggested output cuts.
In a meeting of the 14 members convened in Vienna on Thursday, the OPEC recommended members and associated countries to cut daily oil output by 1.5 million barrels.
The OPEC earlier said the policy would apply through the first half of this year, and it would review the policy in its next meeting on June 9, but later updated it to say the changes would apply through the year.
The decision comes in the wake of the novel coronavirus (COVID-19) outbreak that has shaken the global economy.
The OPEC noted that the outbreak has a "major adverse impact" on global economic and oil demand forecasts, especially for the first two quarters.
"Global oil demand growth in 2020 is now forecast to be 0.48 mb/d, down from 1.1 mb/d in December 2019," the world's largest oil supplier group noted. "Moreover, the unprecedented situation, and the ever-shifting market dynamics, means risks are skewed to the downside."
According to Reuters, Russia and Kazakhstan, both non-OPEC allies, haven't agreed to the cut, giving rise to the fear that the latest move could tear apart the organization.
The West Texas Intermediate crude oil futures traded 1% lower at $45.44 at press time on Thursday. Brent futures similarly traded 1.08% lower at $49.45.