OPEC + eyes extension of agreement
By Sara Israfilbayova
Top oil nations that are party to the output cut deal are discussing the prolongation of production cuts after March 2018 for a period of three to six months, but consensus has not yet been reached on this issue.
A source in the OPEC told TASS that this question depends on indicators.
“Some members want to extend, others do not, third want to increase quotas. Now consultations are in progress, we still have time. [Prolongation] is currently being discussed for a period of three to six months,” the interlocutor said.
The issue of the fate of the deal after March 2018 will be discussed at a regular meeting in Vienna on November 30.
“This will depend on the decision taken in November,” the source said.
Previously, the Monitoring Committee on the implementation of the agreement on the reduction of oil production by the OPEC and non-OPEC countries urged all participants to fulfill their obligations.
The 5th meeting of the OPEC and non-OPEC Joint Ministerial Monitoring Committee was held in Vienna on September 22, where the issue of extending the deal was discussed.
Following the meeting, Russian Energy Minister Alexander Novak stressed that it is best to make a decision on this issue not earlier than January.
Over 8 months that the agreement is operating, the surplus of global oil reserves decreased by 168 million barrels and now stocks exceed the five-year standard by only 170 million barrels., according to Novak.
Saudi Energy Minister Khalid Al-Falih, in turn, said that his country will reduce oil exports in September and limit it at around 6.6 million barrels per day, which is 1 million less than a year ago.
Later, plans to cut exports were announced by the UAE.
The next JMMC meeting is scheduled for the day prior to the full ministerial meeting on November 30 in Vienna.
OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.
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