OPEC + committee recommended the extension of the transaction for 9 months

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OPEC + committee recommended the extension of the transaction for 9 months
July 02
09:00 2019

Insiders report that the committee, which monitors the implementation of the agreement, has advised OPEC + to extend the deal to cut production for 9 months.

In addition to the deadlines, the committee can give OPEC + recommendations for the stricter implementation of its obligations under the transaction.

All countries bound by the agreement have supported the idea of maintaining the agreement on the production cut for 9 months. The volumes will correspond to those that operated in the first half of the current year.

According to the Russian oil minister Alexander Novak, the extension of the deal for a longer period was not discussed at the OPEC + meeting. Only the terms of 6 and 9 months were on the agenda then. As a result, the term of the extension for 9 months was victorious in the general vote. This is justified by the need to overcome the winter period, when demand will fall.

Minister Novak also noted that in May, the agreement had been exceeded by 750 thousand b / d. “May turned out to be a record for us in this regard, but this deal will remain in the previous parameters used in December,” he said. Mr. Novak added that OPEC + would aim to reduce production by 1.2 million b / d.

In addition, it is worth saying some words on Saudi Arabia. Since March, the country has been reducing production by a volume of 500,000 b / d more than it should be.

The agreement was valid until June 30th. Cartel members and other countries doubted about a new deal because of the difficult situation in the Middle East.

In June, the Ministry of Energy of Saudi Arabia announced that they had practically agreed on extension of the OPEC + agreement.

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