Saudi Arabia believes that the Organization of the Petroleum Exporting Countries (OPEC) should decide to extend the production cut agreement during the Vienna summit in July, according to Saudi Energy Minister Khalid Al-Falih, Reuters reported.
The minister stressed that OPEC was close to extending the agreement, yet more talks were still required with non-OPEC producers that were part of the output cut deal.
“We are hoping that we will reach consensus to extend our agreement when we meet in two-weeks-time in Vienna,” Al-Falih told reporters on the sideline of a G20 energy and environment ministerial meeting in Karuizawa, northwest of Tokyo.
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-Falih commented on the meeting time after Russia’s delay request by stating that it will probably be on the first week of July. Moreover, it was not clear whether the agreement would include non-OPEC producers or not.
OPEC and its allies currently have a deal to cut output by 1.2 million barrels per day (b/d) that will expire by the end of June 2019.