July 14, 2020

Oil prices slide amid OPEC+ production cuts meeting uncertainty

A ministerial conference could be called at short notice this week if there was an agreement, the sources said, adding that a meeting on Friday could be arranged.  

OPEC and non-OPEC allies were originally scheduled to review their production cuts on June 9-10. However, Algeria, which currently holds the rotating OPEC presidency, proposed last month to bring the meeting forward.

On Wednesday TASS reported, citing sources, that the key OPEC+ producers, Russia and Saudi Arabia, have agreed to extend the maximum level of production within the alliance by at least one month.

Also on rt.com OPEC’s second largest producer won’t give up on output cuts

Russian Energy Minister Alexander Novak said on Thursday that the global oil market could face a shortage of three to five million barrels per day in July, depending on the deal reached by OPEC+.

In April, the international oil producing alliance OPEC+ agreed to reduce supply by a combined 9.7 million barrels per day (bpd) during May and June. The move was designed to prop up crude prices as the Covid-19 pandemic led to an unprecedented collapse in energy demand. Production cuts began on May 1 and are set to run through to the end of June.

Crude prices climbed in recent weeks, recovering from a dramatic fall in April which saw Brent futures hover close to 20-year lows and US WTI tumble into negative territory for the first time in history.

Also on rt.com Russia reduces oil production in May close to OPEC+ target

The international benchmark was trading 0.8 percent lower as of 14:36 GMT on Thursday, at $39.44 a barrel. US crude tumbled 1.4 percent to $36.75.

According to analysts at SP Global Platts, Brent crude prices “may find some pockets of support” in the range of $35 to $40 a barrel in June.

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Article source: https://www.rt.com/business/490771-russia-saudi-opec-agreement/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

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