The Organization of the Petroleum Exporting Countries (OPEC) is about to make its decision to extend the production cut agreement, the UAE energy minister Suhail Al-Mazroui revealed during the International Economic Forum of the Americas, Reuters reported.
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.”
“I think the demand for oil will remain solid in 2020,” Al-Mazroui noted on the sidelines of the economic forum.
OPEC members will meet in Vienna on June 25, followed by talks with its allies led by Russia on June 26 to take a final decision, however, Moscow asked for the meeting to be moved to July 3-4, a request reportedly supported by Saudi Arabia.
Al-Mazroui expressed neutrality regarding the delay request, rather focusing on the awaited decision. “We are talking about a separation of two weeks. The most important is what we know today and what we know today tells us that we need to extend, in my view.”
OPEC and its allies agreed to curb around 1.2 million barrels per day (b/d) for six months, starting from January 2019 to put a maintain market balance and avoid a supply glut.