Monday, 06 Apr 2020

Putin says extending OPEC deal until end of 2018 is 'possible'

Moscow [Russia], Oct 5 : Russian President Vladimir Putin on Wednesday said a deal between OPEC (Organisation of the Petroleum Exporting Countries) and other oil producers to reduce production could be extended to the end of 2018.

The pact between the OPEC, Russia and other producers on cutting output by about 1.8 million barrels per day (bpd) is now due to expire in March.

"Everyone is interested in a stable market. What we did with OPEC, I believe, is beneficial for all the global economy," Putin said during an energy forum in Moscow.

"When we decide on whether to extend or not, we will decide on the time-frame. But on the whole, if speaking about a possible extension, this should be at least until the end of 2018," he further said.

Putin's comments have raised the prospect of a longer extension than others have mentioned.

OPEC ministers attending the Moscow event said they were considering extending the deal or making a deeper cut. The accord has already been extended once at OPEC's last meeting in May, but producers have been hesitant at a larger cut so far.

OPEC Secretary General Mohammed Sanusi Barkindo said, "The issue is about stability. Without stability, which eluded the oil market in the last 2-3 years, we can all see the consequences on investments that President had referred to. Investments in this industry have contracted in the last 2-3 years, cumulatively over 40 percent, threatening future supplies."

"And we all have the shared responsibility, whether OPEC or Russia, to ensure the security of future supplies. We are reliable and dependable suppliers of oil to the oil-consuming markets, not only now, but for the foreseeable future," Barkindo added.

The OPEC deal was aimed at reducing a global oil glut that had seen crude prices plummet from over 100 dollars a barrel in 2014 to a 13-year low of under 30 dollars last year.

(ANI | 3 years ago)