OPEC, Russia And Others Are Close To An Agreement On Long-Term Oil Supply Coordination

Russian Energy Minister Alexander Novak said his country, OPEC and other producers are in final talks on an agreement that may be signed early next month to cooperate on oil supplies on a long-term basis,”.

“Talks with OPEC on amending the date of the meeting to early July from the original date scheduled for June 25 and 26 are nearing an end,” Novak told the Japanese newspaper Tiki.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been in agreement since the beginning of January to cut production by 1.2 million bpd to support prices.

The alliance, known as OPEC +, is due to meet on June 25-26 or early July to decide whether or not to extend the agreement.

On Thursday, OPEC cut its forecast for global oil demand growth due to trade disputes, citing the risk of a further decline, which would justify tightening supply restrictions until the end of 2019. “

Oil prices jumped 4% on Thursday after attacks on two oil tankers in the Gulf of Oman, sparking tensions between the United States and Iran, raising concerns about the safety of oil shipments through one of the world’s busiest shipping lanes.

OPEC said in a monthly report published on Thursday that global demand for oil will increase 1.14 million barrels per day this year, less than 700 thousand barrels per day than previously forecast.

Source: National Iraqi News Agency