Iran Press/Asia: “In any event, we will support the continuation of agreements - both Russia and Saudi Arabia in the volumes previously agreed,” Vladimir Putin told reporters.
“We have agreed: the agreement will be extended,” Russian President said in Osaka.
According to a Bloomberg report, Putin's comments, at the Group of 20 summit in Japan, all but make the outcome of the OPEC meeting July 1-2 in Vienna a foregone conclusion, and further, reinforce Putin’s role as the ultimate policymaker within the group.
The current version of the deal by the group known as OPEC+ calls for production cuts of 1.2 million barrels a day, which were due to expire at the end of June.
Putin said the extension could last between 6 and 9 months, marking the first time a senior leader from the group has indicated the curbs could be needed into 2020. That reflects a somber outlook for oil supply and demand next year due to a combination of a slowing global economy and rising US shale output.
The current deal removed 1.2 million barrels a day of OPEC+ production, helping to send oil prices higher. The group has reduced output by far more than it agreed, however, due to the impact of US sanctions on Iranian and Venezuelan output. What’s more, Saudi Arabia unilaterally lowered production below its official OPEC+ target, pumping 9.7 million barrels a day in May, compared with a ceiling of 10.3 million.
Saudi Arabia and Russia recently lobbied fellow OPEC+ nations to reschedule their Vienna meeting, shifting it by a few days so oil ministers will gather just after Putin’s sit-down with the crown prince, rather than before as originally planned.
OPEC+ will meet in Vienna, Austria on July 1-2, rather than on June 25-26 as initially scheduled. 101/211/201
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