OPEC+ deal to be extended until April 2020?

OPEC+ deal to be extended until April 2020?

The most probable and the most discussed period for renewal of OPEC+ oil production capping deal is until April of the next year, a high-ranking source in the alliance said.

"Nine months, rather than six, appear most probable," the source said, recalling that Saudi Arabia’s Energy Minister Khalid Al-Falih and Russian Energy Minister Alexander Novak spoke in favor of this variant.

"It means all Middle East countries of OPEC will support Saudi Arabia and the others, from non-OPEC, will support Russia, although discussions will still take place," TASS cited the source as saying.

It is preferable to extent limitations for nine months instead of six, because this creates less clear prospects of 2020 for US shale oil producers, another OPEC source said.

Ministerial meetings of the Vienna Agreement participating countries will take place on July 1-2 in Vienna. Extension of the OPEC+ oil production capping deal. Russia and Saudi Arabia said at the G20 summit in Osaka that both countries support the deal extension for the period from six to nine months. OPEC member-states will make the decision on Monday and non-OPEC countries will join them on July 2.

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