OPEC sees no opposition to cuts extension, focuses on duration

By Angelina Rascouet on 11/7/2017

LONDON (Bloomberg) -- OPEC sees no opposition to prolonging its production cuts beyond March and discussions are now focusing on the duration of the extension, said the group’s top official.

“We’ve not had any party that is objecting to extending the supply arrangement,” OPEC Secretary-General Mohammad Barkindo told reporters in Vienna on Tuesday. “It is the duration, and the terms and conditions that are being discussed.”

The Organization of Petroleum Exporting Countries will meet on Nov. 30 with allies including Russia for talks on their effort to boost oil prices by eliminating a global supply surplus. Many of the group’s most influential members have said the 1.8 MMbpd of joint production cuts they agreed last year should be extended to ensure the job is finished. Negotiations are following the lead of Russian President Vladimir Putin, who said any extension should endure until the end of 2018, Barkindo said last month.

Most of the 21 nations participating in the supply accord have implemented their pledged cuts, helping lift benchmark Brent crude to a two-year high of about $64/bbl. OPEC hopes that even more producers will join the agreement, Barkindo said.

“We are in the process of inviting other producers who have shown an interest in joining this noble global effort,” Barkindo said. OPEC is “very optimistic” that additional non-members will attend the Nov. 30 meeting, he said.

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