قالب وردپرس درنا توس
Home / Business / OPEC and Partners officially ratify New Deal

OPEC and Partners officially ratify New Deal



  OPEC "title =" OPEC "data-pagespeed-url-hash =" 798221706 "onload =" pagespeed.CriticalImages.checkImageForCriticality (this); "/>
</source></picture>
						</div>
<div id=

Russia and the other non-OPEC members of the first-ever sealed production cut-off pact officially ratified an extension of the last cut agreed in December, Energy Minister Alexander Novak said today at the OPEC meeting in Vienna the details of the deal one day before.

CNBC reported that OPEC had agreed to extend the cutbacks ̵

1; totaling 1.2 million bpd – by the end of March 2020, as prices stubbornly refuse to go well beyond the $ 60-65 band climb .

The news follows earlier reports that Russia, Saudi Arabia and Iraq had declared their support for a further extension of the cuts. Iran also approved the extension yesterday, despite the growing internal divide in the oil export cartel.

The decision to extend the cuts is not particularly surprising. With the ever-increasing oil production in the US, OPEC has few, if any, good steps ahead of it. Russia has repeatedly stated that it would be pleased to see lower oil prices than its partners in the Middle East, but has once again agreed to continue the cuts. Some saw in it a deal in which the Middle Eastern partners – especially Saudi Arabia – would compensate Moscow for the inconvenience of having to sell less oil with investment contracts in energy and other sectors.

However, this compensation can not eliminate the risk of Rosneft claiming its own compensation for production restrictions: Last month, CEO Igor Sechin said the company would demand such compensation from the Kremlin if it agreed to an extension of the cuts.

Perhaps more worrisome for OPEC is that the price of oil has been weak on the news: Reuters reported earlier today that Brent and WTI had withdrawn from the top that followed the first announcement of the austerity agreement, under pressure from Dealer worries about the prospects of the global economy in the context of the US – Chinese Trade War.

At the time of writing, Brent traded crude at $ 64.87 a barrel and West Texas Intermediate at $ 58.91 a barrel, Bo th down from opening.

By Irina Slav for Oilprice.com

Read more Top Reads from Oilprice.com:[19659012[DownloadTheFreeOilpriceAppToday


Back to homepage


Source link