OPEC extends production-cut targets for 9 months
Members of the Organization of Petroleum Exporting Countries said they agreed to extend their oil production cuts by 9 months to support oil prices amid a weakening world economy.
Saudi Arabia’s Energy Minister Khalid al-Falih said the cartel recognizes that this year’s first quarter was a period of slow demand. The agreement will go to approval from non-OPEC allies, including Russia, at a July 2 meeting in Vienna.
Al-Falih said a new charter of cooperation was drafted and will be published. Ahead of the July 1 meeting, OPEC had been widely expected to extend cuts by at least 6 months.
Iraq’s Oil Minister Bijan Zanganeh already told reporters in Vienna he had “no problem” with supporting oil supply cuts by 9 months.
OPEC and some non-OPEC producers have been reducing oil production since 2017 to support oil prices worldwide.
Al-Falih said he would like world oil inventories to be in the level they were in 2010-14 rather than what he called a “bloated 5-year average.”
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
