Home > Breaking News > OPEC and Non-OPEC members meet in Vienna to discuss extending oil cut deal, tracking exports

OPEC and Non-OPEC members meet in Vienna to discuss extending oil cut deal, tracking exports

Agency reports

 

OPEC and non-OPEC nations meeting on Friday will focus on a possible extension of an oil supply cut deal to support prices and monitoring exports to assess compliance.

The Organization of the Petroleum Exporting Countries aims to clear a global oil supply glut by curbing output by about 1.2 million barrels per day (bpd). Russia and other non-OPEC producers agreed to cut half as much. The pact runs to the end of March.

Ministers on a panel monitoring the deal, which comprises Kuwait, Venezuela and Algeria, plus non-OPEC producers Russia and Oman, are scheduled to meet at 0800 GMT on Friday in Vienna.

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Oil prices have gained more than 15 percent in the past three months to trade above $56 a barrel, suggesting the deal is making progress in getting rid of excess supply. But oil is still half the level it was in mid-2014.

Kuwaiti Oil Minister Essam al-Marzouq said on Thursday compliance with output cuts was improving and was above 100 percent. “It is very good, better than last month,” the minister told reporters after arriving in Vienna.

A technical committee of OPEC and non-OPEC states that met on Wednesday said compliance in August was 116 percent of their pledged oil output cuts, three sources said. That is up from 94 percent in July.

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Algeria’s Energy Minister Mustapha Guitouni said on Wednesday OPEC would discuss extending the deal with non-OPEC producers. He did not comment on arrival in Vienna on Thursday.

Russian Energy Minister Alexander Novak, said countries would discuss a monitoring procedure for oil exports at the meeting, Russia’s RIA news agency reported.

Friday’s meeting of Joint Ministerial Monitoring Committee, chaired by Kuwait, could make a recommendation on policy to the wider group, which next meets in November.

So far, no common position has emerged on how long any extension of the supply cuts should last, an OPEC delegate said.

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“Things are subject to discussions,” the delegate said. “So let’s see.”

Nigeria’s oil minister and the head of Libya’s state oil company, whose countries are exempt from the supply cuts, are also due to join the meeting, OPEC sources said.

 

-Reuters

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