Russia and Saudi Arabia have agreed to extend the maximum level of oil production cuts in OPEC+ for at least one month, Future plans will depend on the market situation, TASS reports with reference to a source involved in the negotiations.
"We agreed that we need to extend it for at least a month. We will continue to look at the situation," he said.
Officially, this information is not commented on by the ministries of energy of the countries. The Agency's interlocutor also added that the energy ministers of Russia and Saudi Arabia are in constant contact and "in mutual understanding". At the same time, the Agency source said, they were not satisfied with the data on the fulfillment of obligations by a number of other countries in May, which were summed up yesterday.
"Until the issue of quota compliance is resolved, the meeting will not be scheduled," the source told TASS.
Another source confirmed that for June 4 only a technical meeting is scheduled, where representatives of the ministries will discuss "the impact of the coronavirus pandemic on the oil market, summarize forecasts for the coming months."
The OPEC + Ministerial meeting was originally scheduled for June 9-10, 2020. As previously reported, the issue of further actions in the oil market was to be discussed at the meeting. According to the April agreements, OPEC+ countries reduce oil production by 9.7 million barrels per day (b/ d) only during May - June. Since July, the restrictions were planned to be eased and reduced by 7.7 million b/d.
However, in May, Saudi Arabia offered to maintain the maximum quota after June. Several options were discussed, including an extension until the end of the year and for a period of up to three months. At the same time, the meeting was proposed to be moved to an earlier date - June 4, this would allow the formation of delivery schedules and prices for July.
GSV "Russia - Islamic World"
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