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    OPEC Agrees to Extend Oil Production Cuts for 9 Months - Statement

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    VIENNA (Sputnik) - OPEC members, after long discussions at the organization’s Monday meeting, have reached a compromise on a draft charter on cooperation with non-OPEC oil producers for an unlimited period of time, a source in one of the delegations said.

    “Looks like a compromise reached on Charter", the source said. The OPEC talks started five hours ago and are still ongoing due to Iran’s opposition to approving the document, which aims to coordinate policies to stabilize global oil markets.

    The petrochemical organization also agreed Monday on an extension of OPEC-non-OPEC oil production cuts for another nine months, according to OPEC president.

    "We have reached an agreement to extend [the deal] for nine months with the current production levels", Manuel Quevedo, Venezuela’s oil minister, said at a press conference after OPEC talks.

    The OPEC president said that Secretary-General Mohammed Sanusi Barkindo would stay in office for a second term.

    "I’m very glad that His Excellency Mohammed Sanusi Barkindo has another three years as OPEC secretary general", Manuel Quevedo said at a press conference following the OPEC talks.

    The next ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC) will take place on 5 December.

    Saudi Energy Minister Khalid Falih said earlier that any prolongation of OPEC+ oil output cuts beyond June will help reduce commercial oil reserves and thus balance the global market.

    On Saturday, Russian President Vladimir Putin said after meeting the Saudi crown prince on the sidelines of the G20 summit in Japan that the two countries had agreed on a common position on the future OPEC+ deal and would support its extension with already-agreed limits on oil production.

    In December 2018, participants of the OPEC+ deal agreed to reduce overall production by 1.2 million barrels per day in the first half of 2019. OPEC member states pledged to cut production by 800,000 barrels per day, while non-OPEC countries agreed to reduce it by 400,000 barrels per day.

    Russia agreed last fall to reduce its oil production by 228,000 barrels a day from the October 2018 level in the first half of this year as part of a revamped agreement between OPEC and non-OPEC oil majors.

     

    Related:

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    OPEC+ to Decide on Extension of Oil Output Cut Deal on July 1-2 in Vienna
    Putin, Saudi Crown Prince Meeting Signal of Commitment to Sustain Market Stability - OPEC
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