By Abdelwahab El-Gueyed
VIENNA, July 1 (KUNA) -- Ministers of the Organization of Petroleum Exporting Countries (OPEC) began Monday their 176th meeting to discuss efforts to maintain the supplies decrease at the global market with a general impression that the production cut deal will continue until the first quarter of 2020.
Since 2017, countries involved in the deal managed to cut production to counter the decline in oil price due to slow economic growth and increase of American oil production.
In a brief statement to KUNA after the conclusion of the Joint Ministerial Monitoring Committee's (JMMC) meeting, Omani Minister of Oil and Gas Mohammad Al-Rumhi said that the committee recommended that the low production capacity to be maintained with the duration, whether it was six or nine months, to be announced tomorrow, Tuesday.
Similarly, Russian Energy Minister Alexander Novak said that party members in the JMMC support a nine-month extension of the production cut deal.
Previously, Saudi Oil Minister Khaled Al-Faleh told reporters that the 2015 deal to decrease production by 1.2 million barrels might extend to another nine months.
OPEC members slashed production by around 800,000 barrels per day while the 11 non-OPEC members agreed to reduce production to 400,000 bpd.
The news helped in the price increase of oil at the global market with the Brent crude reaching USD 66.6 per barrel, the West Texas Intermediate also went up to settle at USD 60.10 pb.
Statements by Russian President Vladimir Putin during his meeting with Saudi Crown Prince Mohammad bin Salman at the G20 in Osaka, Japan, had reflected a Saudi-Russian understanding over maintaining the current production numbers, referred to as "OPEC+".
Sources close to OPEC revealed that the ministerial meeting would address two main issues, maintaining the production cut for a period of six to nine months as well as the signing of long-term deals with countries outside of organization. (end) amq.gta