OPEC is about to reach an agreement to extend the agreement on cutting production beyond its current deadline at the end of June, said Khalid al-Falih, the energy minister of the largest producer and de facto leader of the OPEC, Saudi Arabia.
"On the OPEC side, a rollover is almost in the bag. The question is to calibrate with non-OPEC," Reuters quoted al-Falih as told at the St. Petersburg International Economic Forum in Russia.
"I hope it will be an easy decision and that it will replace us, but if it is not, we will be flexible in terms of position in the kingdom" al-Falih said.
OPEC and its non-OPEC allies led by Russia are holding back a total of 1.2 million barrels of oil from the market until the end of June and will meet in the coming weeks to discuss how to proceed with their policies. oil supply management in place since the beginning of 2017.
The oil price slide in the last two weeks the OPEC and its partners have no choice but to rethink the cuts, analysts say.
After a meeting with the Russian Energy Minister Alexander Novak, the al-Falih of Saudi Arabia He said that he was sure that the largest OPEC + group would exceed production cuts by the end of this year.
There will be no need to deepen the cuts, while the situation with the oil supply in Iran, Venezuela and other countries will show whether the OPEC and the allies have to cut back the cuts "a bit," al-Falih said, as reported by Bloomberg.
At the beginning of this week, al-Falih tried to insure the oil market that the Saudis and the largest OPEC + group would do anything to bring balance between supply and demand.
Saudi Arabia and Russia, the respective leaders of the OPEC and non-OPEC groups as part of the production reduction operation, have been allies in managing the oil market for more than two years, although the Saudis need to oil prices at $ 85 to balance their budget while Russia claims that it's okay with the current price of oil at $ 60-65.