The Organization of the Petroleum Exporting Countries, OPEC, and other producers are set to meet in Vienna on Friday, September 22, to discuss the progress of their deal to limit output.
The group is considering a range of options, including an extension of cuts, but it is premature to decide on what to do beyond the agreement’s expiry in March, Iraqi oil minister Jabar al-Luaibi told an energy conference on Tuesday.
OPEC and non-OPEC producers including Russia have agreed to reduce output by about 1.8 million barrels per day (bpd) until March to reduce global oil inventories and support prices.
Some producers think the pact should be extended for three or four months, others want it to run until the end of 2018, while some, including Ecuador and Iraq, think there should be another round of supply cuts, al-Luaibi said.
“There’s been some general support on that upcoming meeting,” said Tony Headrick, energy market analyst at CHS Hedging.
“The market will be monitoring that closely, to see if they’re including Nigeria and Libya,” he said, “Cuts have been relatively well implemented recently and early thoughts are that they’re going to maintain those cuts.”
