OPEC and Russia discuss extending cuts of oil by 1-2 months | International

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The OPEC and Russia you are getting closer to closing a commitment to extend the cuts to current production of oil and discuss a proposal to do so during one or two months, told Reuters three sources of the OPEC+.

The OPEC+, that make up the OPEC and its allies, decided in April to reduce the production at a record high of 9.7 million barrels per day, or about 10% of the global production, to raise prices hit by a drop in demand linked to the measures of blockade designed to stop the spread of the coronavirus.

In place of relieve cuts production in July, sources told Reuters last week that the de facto leader of OPEC, Saudi Arabia, he led the discussions on your support until the end of the year.

However, I still had to win the support of Russia, which believes that the brakes may be relieved gradually.

“Is the proposal now, but has not yet been finalised,” said a source from the OPEC+ on the extension of 1-2 months.

“It is for a month or two, not half a year,” said for his part a source in the oil industry of Russia, on the extension of the cuts existing.

Another source of OPEC+ said that there was support for the proposal from Russia for a one month extension, but “we still don’t have consensus on that.”

It is likely that the group OPEC+ held an online meeting on 4 June to discuss production policy, after Algeria, which currently holds the presidency of the Organization of Petroleum Exporting Countries, proposed a meeting scheduled for the 9th and 10th of June.

The reduction of pumping from the OPEC+, combined with a decrease in record production of non-member states such as the united States and Canada, have helped raise oil prices to US$ 35 per barrel, but remain at only half of the level from the beginning of the year.



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