Just weeks after OPEC and its partners agreed to implement another round of production cuts, the cartel is ready to extend those cuts as international prices continue to fall.
Reuters reports, citing the United Arab Emirates's oil minister, that OPEC is prepared to convene an extraordinary meeting by entering "whatever it takes" mode again.
Earlier this month, OPEC, Russia and nine other producers agreed to reduce their combined oil output by 1.2 million barrels a day, with OPEC's share of 800,000 bpd. However, the news failed to impress a market concerned about global economic growth and hence the demand for crude oil.
Speaking at a Kuwaiti news conference, Suhail al-Mazrouei of the United Arab Emirates said it would not be a problem for the cartel to extend the cutoff period, initially set to four months from January.
"What if the 1.2 million barrels of cuts are not enough? I am telling you that if it is not, we will meet and see what is sufficient and we will do it, "said Mazrouei, adding that" the plan (to cut off oil production) is well studied, but if it does not work, always have the power in OPEC to convene an extraordinary meeting. If we are obliged to extend for another six months, we will do so … I can guarantee that an extension will not be a problem. "
While the climate at OPEC seems to be on the worried side, Argus Media expects oil prices to stabilize in early 2019 as the cuts come into force. CNBC reports, quoting the energy data provider, that sees Brent at an average of $ 65 a barrel during the first quarter of 2019, rising to $ 68 a barrel in the second quarter and more to the lowest $ 70s on the third. quarter of 2019.
By Irina Slav for Oilprice.com
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