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Russia and Saudi Arabia agree to extend oil production cuts

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Money Talks: Saudi Arabia and Russia agree to extend oil output cut Description video: Oil prices have jumped after two of the world’s top producers agreed to more output cuts. Ministers from Saudi Arabia and Russia said they would back […]

Money Talks: Saudi Arabia and Russia agree to extend oil output cut

Description video:
Oil prices have jumped after two of the world’s top producers agreed to more output cuts. Ministers from Saudi Arabia and Russia said they would back an extension of a deal reached last November until the end of March 2018. Interview with Florida-based energy and geopolitics expert Ellen Wald. \r\n \r\nSubscribe: http://trt.world/subscribe\r\n\r\nLivestream: http://trt.world/ytlive\r\n\r\nFacebook: http://trt.world/facebook\r\n\r\nTwitter: http://trt.world/twitter\r\n\r\nInstagram: http://trt.world/instagram\r\n\r\nVisit our website: http://trt.world

Russia and Saudi Arabia agree to extend oil production cuts

Saudi Arabia and Russia have agreed on a preliminary deal to extend existing oil production cuts by one month. In addition, measures have been agreed to increase pressure on countries that violate compliance with the conditions for cutting production..

Recall that OPEC + agreed to cut production by a record 9.7 million barrels per day, or about 10% of global production, in May and June to raise prices, which have collapsed as a result of falling demand associated with the pandemic.

Instead of easing production cuts in July, OPEC and OPEC + discussed maintaining current production volumes.

«Saudi Arabia and Russia agreed on a one-month extension. The agreement is due to the fact that countries that did not fully fulfill the May conditions in the coming months will reduce their volumes in order to compensate for overproduction», – a source told Reuters.

OPEC members Iraq and Nigeria showed poor compliance with their production cut targets in May. Kazakhstan also failed to fully fulfill its obligations under the OPEC pact+.

Russia and Saudi Arabia agree to extend oil production cuts

The group also considered hosting an online meeting on 4 June to discuss manufacturing policy. However, Algeria proposed to postpone the discussion to June 9-10..

«I don’t think the meeting will take place on June 4th. Before that, we need to sort out many more problems.», – said another source at OPEC.

In recent days, oil prices have been rising amid the ongoing recovery in China and the gradual opening of other economies.

«In general, the market is moving in the right direction with the phased lifting of restrictive measures around the world. But we still have to be careful. There is always a risk of another wave of disease», – said a source in OPEC.