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OPEC to Decide on Production Cut Extension

Wednesday, June 12, 2019

OPEC is contemplating an extension to its production cuts. UAE Minister of Energy Suhail Al-Mazroui revealed at the International Economic Forum of the Americas that a decision on the production cut extension would be made soon.

Al-Mazroui believes that based on the current level of crude oil inventories, output cuts should remain in place or be extended “at least until the end of the year,” stating that the “right decision will be a rollover.”

OPEC members meet in Vienna on June 25, followed by talks with its allies led by Russia on June 26 to take a final decision. However, Russia asked for the meeting to be moved to July 3-4, a request reportedly supported by Saudi Arabia.

OPEC and its allies agreed to curb around 1.2 million bpd for six months, starting from January 2019 to put a maintain market balance and avoid a supply glut.