OPEC likely to extend production cuts into next year
VIENNA — OPEC countries and other producers including oil giant Russia are backing prolonging last year’s production cut to shore up crude prices, strongly indicating that an extension is a done deal even before they meet formally on the issue Thursday.
The output reductions have been in effect since November, when the 13-country Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels a day, while non-OPEC countries chipped in with a further 600,000-barrel reduction. That deal, which has helped push up oil prices, is due to expire at the end of June.
Saudi Energy Minister Khalid al-Falih noted a “trend” among participants to prolong the cuts for nine months. OPEC Secretary General Mohammad Barkindo said there is “growing consensus” for an extension.
Iranian oil minister Bijan Namdar Zanganeh told reporters there was already apparent unanimous consent “to continue the cut that we had in November.”