extension of cuts expected
Last Updated : GMT 11:59:16
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 11:59:16
Egypt Today, egypt today

At OPEC Meeting

Extension of cuts expected

Egypt Today, egypt today

Egypt Today, egypt today Extension of cuts expected

The deal by 24 producers reduced production by 1.8 million barrels per day
Riyadh - AFP

With oil prices nudging steadily higher, market expectations are for crude-pumping countries to prolong their deal to curb output at a meeting at OPEC headquarters in Vienna on Thursday.

Markets could be disappointed, however, with Russia reportedly not yet fully on board about signing up to extending the agreement, due to expire on March 31, until the end of 2018, experts say.

The deal by 24 producers reduced production by 1.8 million barrels per day, first struck a year ago, has already been given more time once.

It has borne fruit, helping reduce a global glut that sent oil prices to a less than $30 a barrel in early 2016, a level which helped consumers but blew a hole in producers' finances.

Brent Crude is now nearing $65 per barrel, while fellow benchmark West Texas Intermediate has been heading for $60, with inventories approaching more normal levels.

The price has also been helped by growing optimism about the global economy and its effect on buoying oil demand, not least from China.

"We have accomplished what naysayers thought would be impossible," Mohammad Sanusi Barkindo, OPEC secretary general, said on Monday.

"The current market conditions, the returning level of confidence and optimism in the industry are all evidence of the outcome of our joint efforts," he said.

- Venezuela -

For one of OPEC's founder members however, things are far from rosy. Venezuela, whose oil reserves are the world's biggest, is a whisker away from an all-out debt default.

Just as the South American country needs foreign currency more than ever, oil output is forecast to fall for a seventh successive year in 2018 to the lowest level since 1989.

As a result, Venezuela is producing even less than it vowed to under the output agreement, further reducing the global glut and giving others extra breathing space.

Venezuela "is significantly below the target level and shows no sign of being able to turn that around in the near term or even over 2018," Richard Mallinson from Energy Aspects told AFP.

- Outline deal -

Members of the OPEC cartel and Russia have crafted the outline of an agreement to extend the curbs to the end of 2018, according to Bloomberg News.

Saudi Arabia is thought to be particularly keen since higher oil prices would help boost the value of national oil company Saudi Aramco, some of which it wants to sell next year.

OPEC and Russia are still hammering out crucial details, however, Bloomberg reported. Russian oil companies are reported to be particularly reluctant.

In September, Russian Energy Minister Alexander Novak suggested it was premature to discuss an extension, saying he wanted to wait until January for further data.

A further possible complication could be the dramatic recent deterioration of relations between regional rival Saudi Arabia and Iran, both of which are members of OPEC.

Saudi Arabia's Crown Prince Mohammed bin Salman last week called Iran's supreme leader "the new Hitler of the Middle East".

Iran, following the lifting of sanctions under the 2015 nuclear deal, was allowed a moderate increase in oil production under the producers' accord.

But Mallinson said that, like in the past such as during the Iran-Iraq war (1980-88), the rivals should still be able to work together at OPEC, albeit through gritted teeth.

"So that shouldn't be too much of a concern for the oil market," he said.



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

extension of cuts expected extension of cuts expected

GMT 08:21 2017 Saturday ,23 December

Saudi-Sudanese Deal to Ease Transfers

GMT 06:56 2017 Wednesday ,20 December

Saudi and Russia expnad food integration

GMT 09:03 2017 Saturday ,16 December

Saudi to open a new export bank

GMT 10:02 2017 Thursday ,14 December

Saudi filmmakers, businessmen eye return

GMT 07:58 2017 Wednesday ,15 November

Saudi-Russian missile deal set
Egypt Today, egypt today Modern colorful bedroom renovation

GMT 12:15 2017 Thursday ,21 December

Modern colorful bedroom renovation
Egypt Today, egypt today Paris Fashion Week: John Galliano goes co-ed on the catwalk
Egypt Today, egypt today For the Variety of Interior Design Styles

GMT 22:35 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 14:52 2018 Sunday ,16 September

Dubai Culture supports ‘Back to School’ initiative

GMT 13:13 2018 Tuesday ,11 September

Swara Bhasker slams Vivek Agnihotri for abusive tweet

GMT 18:45 2017 Monday ,07 August

Reda Abdel Moati appointed acting EFSA chairman

GMT 07:42 2017 Monday ,10 July

Delegation of Polish investors arrives in Cairo

GMT 09:11 2017 Monday ,24 July

Shoukry heads for Brussels

GMT 12:56 2011 Tuesday ,13 September

Woman held over illegal abortions

GMT 09:39 2017 Saturday ,18 March

Moroccan and French Defense Officials Meet in Rabat

GMT 07:30 2011 Wednesday ,14 December

Denver’s cowboy culture gets cool

GMT 16:37 2011 Tuesday ,26 April

French giant announces huge bid for Parmalat

GMT 17:50 2011 Wednesday ,27 April

Kuwaiti dinar down to 0.274 per dollar

GMT 20:38 2016 Tuesday ,05 April

Khaleej Times Appoints 'Happiness Editor'

GMT 11:11 2013 Thursday ,14 February

Diamonds are forever

GMT 15:30 2011 Friday ,10 June

17th Century Arab scientists\' stories told

GMT 13:28 2014 Thursday ,07 August

12th Internationl Folklore opens in Lima City

GMT 15:07 2012 Wednesday ,07 November

Pai Skincare launches limited edition sets
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday