OPEC mulls extending oil production cut deal

02 December 2019

OPEC countries unanimously support the feasibility of extending the agreement on the reduction of oil production (OPEC+) after March 2020, when it expires; the extension for 3-6 months is being discussed, three sources in delegations familiar with the talks said.

"The extension (of the agreement) after March is the least we can do. But most likely we will not increase the reduction volume," one of the sources said.

The source specified that one of the options is a six-month extension. Another source said that the probable term of extension is 3 months until June 2020.

"Then there will be a new meeting, we will decide what to do next," the source said.

A high-ranking source added that not only OPEC but also OPEC+ countries "agreed to extend production reduction after March."

Russia’s position on this issue has also been negotiated, another source familiar with the course of internal negotiations said. However, Russia’s Energy Ministry did not comment on this information.

OPEC+ countries (24 oil-exporting countries, including Russia) have been coordinating production management since 2017. At a meeting in July, they extended the agreement to reduce oil production by 1.2 mln barrels per day against the level of October 2018. The agreement is valid until the end of March 2020.