Oil Producers Considering Modified 9-Month Extension of Cuts

Oil Producers Considering Modified 9-Month Extension of Cuts

OPEC and its oil-producing allies are considering a modification of the proposed nine-month extension of the production-cut agreement, Reuters reports.

A committee preparing recommendations for the oil producers floated the idea of a nine-month extension that would be subject to review in June, according to the news agency.

The move is, apparently, in response to Russian concerns, Reuters reports.

Russia, while generally supportive of an extension, has appeared less keen on a nine-month extension than Saudi Arabia.

Internal Russian discussions have focused on a six-month extension, rather than the longer one championed by Saudi Arabia, RT previously reported.  

OPEC ministers are slated to meet tomorrow in Vienna with their non-OPEC partners to discuss the production-cut agreement.

“It will not be an easy meeting and we always look at various scenarios,” said the UAE Energy Minister, Suhail El Mazroui. He noted that the nine-month extension was the primary proposal to be considered, but not the only one, according to Reuters.

OPEC insiders have been predicting a full nine-month extension for over a month, shaping market expectations.

At present, the production-cut agreement is slated to expire in March 2018.


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