Baku, Azerbaijan, Aug. 22
By Kamila Aliyeva – Trend:
The OPEC+ agreement on deeper oil production cuts would be difficult to achieve, Robin Mills, a Non-Resident Fellow for Energy at the Brookings Doha Center, and CEO of Qamar Energy (Dubai), told Trend.
“I think it will be difficult to reach an agreement on deeper cuts, since that would mean bringing in Libya and Nigeria (which have been exempt), imposing an actual cut on Iran, getting better compliance from Iraq, and probably on Russia and other non-OPEC countries volunteering some deeper cuts,” he said.
Coordination of all these issues won’t be easy, although the agreement will be further extended, according to the expert.
“The deal will be extended, I expect, since the market will not be rebalanced by next March,” Mills added.
Talking about the success of the agreement, the expert noted that it surely has had some effect in bringing down oversupply, but not as much as OPEC had hoped.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.