OPEC and non-OPEC oil producers look poised to agree on Thursday to extend output cuts until the end of 2018 to finish clearing a global glut of crude while signaling they could exit the deal earlier if the market overheats.
Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn’t flip into a deficit too soon.
The producers’ current deal, under which they are cutting supply by about 1.8 million barrels per day (bbl/d) in an effort to boost oil prices, expires in March.
Before the 14-country OPEC’s meeting started at around 1100 GMT in Vienna, Saudi Energy Minister Khalid al-Falih said he favored extending cuts by nine months until the end of 2018.
He said it was premature to talk about exiting the cuts at least for couple of quarters and added that OPEC would examine progress at its next meeting in June.
“When we get to an exit, we are going to do it very gradually ... to make sure we don’t shock the market,” he said.
The Iraqi, Iranian and Angolan oil ministers also said a review of the current deal was possible at the next OPEC meeting in June in case the market becomes too tight.
International benchmark Brent crude LCOc1 rose more than 1 percent on Thursday to above $64 per barrel.
As of 1300 GMT, the meeting of the Organization of the Petroleum Exporting Countries had been running for around two hours. It will be followed by a gathering of OPEC and non-OPEC producers led by Russia, scheduled for after 1400 GMT.
Recommended Reading
Woodside Brings in the Know-how
2024-04-01 - Woodside Energy Group CEO Meg O’Neill is relying on technical sophistication to guide the Australian giant as it takes on three challenging projects in the U.S. Gulf of Mexico.
CERAWeek: JERA CEO Touts Importance of US LNG Supply
2024-03-22 - JERA Co. Global CEO Yukio Kani said during CERAWeek by S&P Global that it was important to have a portfolio of diversified LNG supply sources, especially from the U.S.
CERAWeek: Sens. Manchin, Sullivan Say LNG Pause Needs to be Paused
2024-03-20 - U.S. Sens. Joe Manchin and Daniel Sullivan argued against the recent LNG pause announced by U.S. President Joe Biden, saying it creates doubts among allies and creates an opening for competitors as well as U.S. rival Russia.
CERAWeek: Two Minutes with EQT’s Toby Rice on Energy Security
2024-03-22 - EQT Corp. President and CEO Toby Z. Rice spoke to Hart Energy on March 20 on the sidelines of CERAWeek by S&P Global to discuss natural gas infrastructure bottlenecks, energy security and the company’s advances on LNG.
Tinker Associates CEO on Why US Won’t Lead on Oil, Gas
2024-02-13 - The U.S. will not lead crude oil and natural gas production as the shale curve flattens, Tinker Energy Associates CEO Scott Tinker told Hart Energy on the sidelines of NAPE in Houston.