Agreement on oil production cut may be extended for a longer time

Baku. 15 May. REPORT.AZ/ OPEC countries and countries outside the cartel participating in the deal on reducing oil production reached a full consensus on extending the deal.

Report informs citing the TASS, Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid Al-Falih has said in a statement: “I think the decisions will be positive in Vienna. We bring together a complete consensus of the group".

Earlier, Khalid Al-Falih and Russian Energy Minister Alexander Novak in a joint statement said that the two countries are going to recommend at the meeting of the agreement participants on May 25 to extend it for another 9 months, until the end of March 2018, retaining the previous quota of 1.8 mln barrels per day.

Notably, following the news, Brent crude oil price increased by 1.5% up to $ 51.6/barrel.

Analytical Group of Report believes, retaining the previous quota will not allow oil prices to exceed 60 USD/barrel and Brent is expected to fluctuate between $ 45-55 /barrel.