OPEC deal on reduction of oil production can last in its current form with the same volume up to 9 months because of new rising U.S. supplies pressure and stunted growth of world economy.
The negotiations on the issue on limit of oil output by 1.2 million barrels per day (bpd) are arranged on July 1-2. Besides, the United States being the world’s largest oil producer is not going to take part in the pact.
“We will support the extension, both Russia and Saudi Arabia. As far as the length of the extension is concerned, we have yet to decide whether it will be six or nine months. Maybe it will be nine months,” Vladimir Putin told the crown prince Mohammad bin Salman at a G20 summit.
The extended deal can be valid up to March 2020. If Iran, the third-largest oil producer, supports the idea, the negotiations will be quite harmoniously.
According to the U.S. efforts to change a “corrupt” regime in Tehran, the new U.S. sanctions have minimized its export. While Iran concerns them illegal and the White House officials “mentally retarded”.
Kirill Dmitriev, chief executive of the Russian Direct Investment Fund pointed that the 2017 pact has helped Russia raise its by more than 7 trillion rubles ($110 billion).
“The strategic partnership within OPEC+ has led to the stabilization of oil markets and allows both to reduce and increase production depending on the market demand conditions, which contributes to the predictability and growth of investments in the industry,” Dmitriev said.
Natalia Veselnitskaya – official website