Russia and Saudi Arabia agree to extend Opec deal. Photograph: Mikhail Svetlov/Getty Images

Russia and Saudi Arabia agree to a nine-month deal with Opec

Aminy Andawi
Business & Industry
Environmental Energy & Material
Jul 01, 2019
2065
As the oil prices come under renewed pressure from rising US supplies and slowing the global economy, a six to nine months deal with Opec oil output has been agreed by Saudi Arabia and the Russian President, Vladimir Putin. The situation has reached the deal after the G20 summit in Japan and Putin told the deal on a press conference on behalf of the Saudi crown prince.

Khalid al-Falih, Saudi’s energy minister said that the deal would most likely to be extended by nine months, which will end in March 2020. Both Saudi Arabia and Russia will support the extension as far as the length is concerned with no deeper reductions needed.

Furthermore, Falih told the press that the demand in the market is softening but still at the healthy state. He expected the market to stay balanced for the next six to nine months.

The deal was discussed between Opec, Russia and other producers are known as Opec+ on July 1st-2nd, involving curbing oil by 1.2 million barrels per day. However, the world’s largest oil producer, the US, is not participating in making the deal. Russia’s consent the Opec+ group may have a smooth meeting if Opec’s third-largest producer, Iran, endorses the arrangement.

Source: https://www.theguardian.com/business/2019/jun/30/russia-saudi-arabia-extend-deal-opec-oil-output

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