Russia Believes OPEC+ Oil Output Cut Deal Should Be Extended By 9 Months - Energy Minister

Russia believes it is expedient to prolong the OPEC+ oil output cut deal for another nine months, that is, until April 1, 2020, because it will be difficult to get out of the accord in winter, when demand drops due to seasonal factors, Energy Minister Alexander Novak said on Saturday

OSAKA (UrduPoint News / Sputnik - 29th June, 2019) Russia believes it is expedient to prolong the OPEC+ oil output cut deal for another nine months, that is, until April 1, 2020, because it will be difficult to get out of the accord in winter, when demand drops due to seasonal factors, Energy Minister Alexander Novak said on Saturday.

Earlier on Saturday, Russian President Vladimir Putin said after meeting the Saudi crown prince on the sidelines of the G20 summit in Japan, that the two countries had agreed on a common position on the future OPEC+ deal and would support its extension with the already agreed limits on oil production for a period of six or nine months.

"We will discuss this from July 1 to 2. But it seems more expedient for us to go through the winter period also within the framework of the agreement, that is, to be closer, probably, to nine months, because it is difficult to get out of the deal when demand falls in winter .

.. Therefore, it is most likely more expedient to extend the deal for nine months," Novak told journalists.

Novak stressed that in any case, the decision would be made after discussion with all the countries participating in the transaction, and all options would be considered.

Many OPEC countries expressed their views on the future agreement on the reduction of oil production, and its extension for at least the second half of 2019 looks like a "fairly consolidated" decision, Novak noted.

The deal should be prolonged in order not to disturb the market, he added.

"The uncertainties that exist today, plus the forecast for the second half of the year all these factors, both fundamental and force majeure ones they signal that today, in the face of uncertainty, it's still better not to disturb the market, but to prolong the agreement and leave the supply on the market as it is," the minister outlined.