In Vienna, OPEC+ to decide whether the oil output deal should be continued

In Vienna, OPEC+ to decide whether the oil output deal should be continued

The issue of extending the OPEC+ deal and determining the volume of quotas for production cuts will be discussed in Vienna at the upcoming July 1-2 ministerial meeting, .The deal to reduce production by 1.2 million barrels per day was concluded in December 2018 and ends on June 30. According to experts, it had a positive impact on the world oil market and oil prices and the deal to cut oil output should be extended.

In particular, Kazakhstan and Azerbaijan consider it necessary to extend the OPEC+ deal, and under the same conditions, Kazakhstan’s Energy Minister Kanat Bozumbayev and Azerbaijan’s Energy Minister Parviz Shahbazov told reporters on the sidelines of the Future Leaders Forum of the World Petroleum Council.

“If nothing happens, then it would be right to continue with what we have,” the head of the Energy Ministry of Azerbaijan said.

At the same time, Kazakhstan’s Energy Minister told reporters, citing “different positions” among parties to the deal, that “it won’t be easy”. Kazakhstan wanted the deal extended into the second half of the year, he said, describing the oil price in a range of $60-$70 per barrel as “suitable”.

Experts note that no country directly opposes the extension of the deal to cut oil output. Since April, OPEC+ countries have been discussing oil production policy for the second half of the year, but due to uncertainties and geopolitical factors, it has not been possible to come to any agreements yet. In this case, it is referred to the situation around large oil producers – Iran and Venezuela.

Large gas producers, including Turkmenistan, are also interested in strengthening stability on the world oil market. Since increases in oil prices may affect the natural gas market, volatility on the oil market does not contribute to the development of the international gas market.