TODAY.AZ / World news

Expert says S.Arabia to refrain from unilateral actions in extending OPEC+ deal

14 August 2017 [17:09] - TODAY.AZ

By  Trend


There will be a strong case to extend the output cut deal if oil inventories do not come close to the five-year average by the end of March, Abhishek Kumar, senior energy and modelling analyst at Interfax Energy's Global Gas Analytics (GGA), told Trend.

“However, Saudi Arabia will refrain from taking unilateral actions and will push for commitments from other OPEC and non-OPEC countries,” he said.

Expert also predicted that resilience of oil production in the United States to low oil prices will remain the predominant bearish factor over the coming months, which is already slowing the pace of oil market rebalancing.

“The need to discuss an exit strategy, in light of the growing US output, will become even more urgent when OPEC member countries meet in November,” he added.

Earlier, Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said that OPEC and non-OPEC countries party to the output cut agreement can consider the possibility of increasing the production cut quota, which currently stands at 1.8 million barrels per day.

On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, effective from July 1, 2017.

Current reductions will be based on the same terms as those agreed upon in November.

URL: http://www.today.az/news/regions/164073.html

Print version

Views: 1487

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: