Baku, Azerbaijan, May 25
By Anakhanum Hidayatova – Trend:
The probability of extension of the oil output cut deal for the next nine months is very high, Dmitry Marunich, co-chairman of the Kiev-based Energy Strategies Fund, told Trend May 25.
The deal is likely to be supported by a number of non-OPEC countries, including the new ones, for example, Kazakhstan, the expert said.
He added that in this situation, the oil prices may exceed $60 per barrel.
The expert added that even if oil production is relatively high, the oil output cut deal pushes the prices up, and this positively affects the budgets of oil-producing countries.
OPEC and non-OPEC countries are holding a meeting in Vienna to make a final decision on extension of the oil output cut deal reached in 2016.
In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.
Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from Jan. 1, 2017 for six months, extendable for another six months.
OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1.