OPEC+ Gulf states agree to extend term of agreement on oil production cuts


December 5, Fineko/abc.az. The Gulf states of OPEC+ coalition agreed to extend the term of the agreement on oil production cuts.

The foreign media report that the statement was made by Oil Minister Mohammed al Rumi of Oman.

Today, Vienna hosts the 177th meeting of the OPEC Ministers Council, as well as the 17th meeting of the Joint Monitoring Committee of Ministers of OPEC & non-OPEC countries. The 7th meeting of OPEC and non-OPEC Ministers will be held on 6 December.

These days Iraqi Oil Minister Tamir Gadban stated that restrictions on production can increase up to 400,000 barrels and reach 1.6 million barrels per day. However, he also noted that no negotiations on this issue have been held at the OPEC level.

And the fact that OPEC and its allies are giving mixed messages that production will not decline further is causing uncertainty in the market.
According to Bloomberg, at the closed 35th meeting of the OPEC+ Joint Technical Commission (JTC) in Vienna, the recommendations of the ministers were heard out, but the issue of further production cuts was not considered.
Experts, stressing that OPEC, led by Saudi Arabia, and Russia can increase the duration of the agreement on reducing oil production in unpromising countries, stressed that if this happens, crude oil prices will also rise in price.

On the other hand, experts warned that if OPEC does not make changes in the level of production, it could lead to downward pressure on the price of “black gold".

The term of the "Declaration on Cooperation", signed on 7 December 2018 in connection with the daily reduction of oil production by OPEC+ by 1.2 million barrels, was extended from 1 July, 2019 to the end of the 1st quarter of 2020.

Keywords: Opec