OPEC logo is seen at the OPEC headquarters in Vienna on May 24, 2017, on the eve of the Organization of the Petroleum Exporting Countries (OPEC) meeting. (JOE KLAMAR / AFP)

VIENNA - OPEC agreed on Thursday to cut output by an extra 1.5 million barrels per day (bpd) in the second quarter of 2020 to support prices amid an outbreak of coronavirus but made it conditional on Russia joining in, two OPEC sources said.

The oil demand outlook has been hit hard by measures to halt the spread of the virus, disrupting factories, deterring people from travelling and slowing other business activity. Forecasts for crude demand growth in 2020 have been slashed as a result.

ALSO READ: UAE sees no immediate risk to oil flow via Strait of Hormuz

OPEC sources told Reuters that OPEC states expected non-OPEC countries, including Russia, to contribute cuts of about 500,000 bpd out of the overall additional cut of 1.5 million bpd

Saudi Arabia had suggested OPEC and its allies, including Russia, cut up to 1.5 million barrels per day (bpd) for the second quarter of 2020 while extending existing cuts of 2.1 million bpd, which expire this month, to the end of 2020.

But Riyadh, the biggest producer in the Organization of the Petroleum Exporting Countries, and other members of the group have yet to win Russian support for such a deal. So far, Moscow has indicated it would back an extension but not a deeper cut.

OPEC sources told Reuters that OPEC states expected non-OPEC countries, including Russia, to contribute cuts of about 500,000 bpd out of the overall additional cut of 1.5 million bpd.

Two OPEC sources said Russia was on board for the cuts, not just for an extension, although Moscow has yet to comment.

OPEC sources have previously signalled that preliminary discussions with Russia about the cuts held this week in Vienna were trickier than before.

“The worst case scenario is an extension,” said an OPEC source when asked what would happen if Russia refused to join a new cut when OPEC, Russia and other producers meet on Friday.

The proposed OPEC cut, if approved, would be towards the top end of market expectations.

Brent oil prices LCOc1 pared gains by 1200 GMT, trading near US$51 a barrel after an initial 0.6 percent rise on news of OPEC’s plan to cut, highlighting the uncertainty about the real impact of the virus on global demand as it continues spreading.

This year’s slide in oil prices by about 20 percent has made it tough for OPEC states to balance their budgets, while Moscow has said it can cope with current prices.

If OPEC+ was to decide to remove an extra 1.5 million bpd from the market, it would bring the group’s overall output reduction to 3.6 million bpd or about 3.6 percent of global supplies.

Russian Energy Minister Alexander Novak returned to Moscow for consultations on Wednesday after talks in Vienna this week but he will be back in the Austrian capital on Friday for the broader OPEC+ meeting.

“OPEC+ have little choice but to cut output substantially given the virus related demand losses,” said Gary Ross, founder of Black Gold Investors.

READ MORE: Saudi Arabia asks Brazil to join OPEC oil group, Bolsonaro says

“The Saudis have accounted for over half the officially agreed cuts and they will lead the way with additional cuts and the others, including Russia, will join because it is overwhelmingly in their economic interests,” he said.

Ehsan Khoman from Mitsubishi UFG said that the measures by OPEC combined with stimulus by governments and central banks around the world would help reassure markets.