BAGHDAD: OPEC heavyweights Saudi Arabia and Iraq agreed on Monday on the need to extend a global cut in oil supply by nine months in an effort to prop up crude prices, removing a potential stumbling block as producing countries prepare to meet this week.
Saudi Energy Minister Khalid al-Falih said he did not expect any opposition within the Organization of the Petroleum Exporting Countries to extending the curbs for a further nine months, speaking after he met his Iraqi counterpart in Baghdad.
The Saudi minister told a joint news conference with his Iraqi counterpart Jabar Ali al-Luaibi that Iraq had given the “green light” to a proposal for a nine-month extension that would be presented to the meeting in the Austrian capital.
“All the countries within OPEC, which I have talked to have agreed on a nine-month extension. Definitely there is no need to talk to all the 24 member states, however, I do not expect any objection within OPEC to the issue, but the decision will not be finalized until OPEC meeting on May 25 when all the countries sign on the extension decision,” he said.
Iraqi Oil Minister Jabar Ali al-Luaibi said he agreed with Saudi Arabia on the need for a nine-month extension.
“We agreed with the Kingdom (of Saudi Arabia) and the minister’s call to extend oil output cut agreed on by OPEC last year for six to nine months.”
OPEC meets in Vienna on Thursday (May 25) to consider whether to prolong the original deal reached in December in which OPEC and 11 non-member countries, including Russia, agreed to cut output by about 1.8 million barrels per day in the first half of 2017.
