Saudi Arabia, Russia agree to extend Opec+ deal

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Russia and Saudi Arabia have agreed a termless extension of the Opec+ deal at the Moscow meeting, stated Russia’s energy minister as saying on Saturday, adding that the agreement stipulates output regulation at any moment, a media report said.

"I would like to point out that two days ago the meeting between [Saudi Arabia’s] Crown Prince Mohammad bin Salman and [Russian] President Putin in Moscow saw one of historic decisions - to extend the collaboration between the countries, the so-called Opec+ agreement for an unlimited period of time," Alexander Novak was quoted as saying by Russian news agency Tass.

"I think that the framework is the same. It will simply be institutionalized, and will not specify particular volumes. Most likely it will stipulate the possibility of decision-making if needed," Novak explained.

"Previously they also stood for an extension. The only thing was to seek for a cooperation format," he said, adding that the issue would be "discussed with all participants of the agreement."

At the end of 2016, Opec and 11 independent oil-exporting countries, including Russia, entered into an agreement to reduce oil production. According to the agreement, during the first half of 2017, the participants had to withdraw 1.8 million barrels per day from the oil market against the level of October 2016. Russia pledged to reduce oil production by 300,000 barrels per day. The purpose of the agreement is to reduce global oil reserves to five-year average levels, Tass reported

On June 22-23, Opec + participants will meet in Vienna to discuss options for further implementation of the transaction, including mitigation of the existing restrictions. Production growth is expected to equal 1.5 million barrels per day, and may start on July 1, according to the report.

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