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OPEC panel to discuss extending oil cut deal, tracking exports
September 21, 2017 / 4:04 PM / a month ago

OPEC panel to discuss extending oil cut deal, tracking exports

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria September 21, 2017. REUTERS/Leonhard Foeger

VIENNA (Reuters) - OPEC and non-OPEC nations meeting on Friday will discuss a possible extension of an oil supply cut deal to support prices and will consider monitoring exports to assess compliance.

The Organization of the Petroleum Exporting Countries aims to clear a global oil supply glut by curbing output by about 1.2 million barrels per day (bpd). Russia and other non-OPEC producers agreed to cut half as much. The pact runs to the end of March.

Ministers on a panel monitoring the deal, which comprises Kuwait, Venezuela and Algeria, plus non-OPEC producers Russia and Oman, are scheduled to meet at 0800 GMT on Friday in Vienna.

Oil prices lcoC1 have gained more than 15 percent in the past three months to trade above $56 a barrel, suggesting the deal is making progress in getting rid of excess supply. But oil is still half the level it was in mid-2014.

Kuwaiti Oil Minister Essam al-Marzouq said on Thursday compliance with output cuts was improving and was above 100 percent. “It is very good, better than last month,” the minister told reporters after arriving in Vienna.

A technical committee of OPEC and non-OPEC states that met on Wednesday said compliance in August was 116 percent of their pledged oil output cuts, three sources said. That is up from 94 percent in July.

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria September 21, 2017. REUTERS/Leonhard Foeger

Algeria’s Energy Minister Mustapha Guitouni said on Wednesday OPEC would discuss extending the deal with non-OPEC producers. He did not comment on arrival in Vienna on Thursday.

Russian Energy Minister Alexander Novak, due to arrive in Vienna later in the day, said countries would discuss a monitoring procedure for oil exports at the meeting, Russia’s RIA news agency reported.

People walk past the logo of the Organization of the Petroleum Exporting Countries (OPEC) in front of its headquarters in Vienna, Austria September 21, 2017. REUTERS/Leonhard Foeger

Friday’s meeting of Joint Ministerial Monitoring Committee, chaired by Kuwait, could make a recommendation on policy to the wider group, which next meets in November.

So far, no common position has emerged on how long any extension of the supply cuts should last, an OPEC delegate said.

“Things are subject to discussions,” the delegate said. “So let’s see.”

Nigeria’s oil minister and the head of Libya’s state oil company, whose countries are exempt from the supply cuts, are also due to join the meeting, OPEC sources said.

Editing by Jason Neely and Edmund Blair

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