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Opec+ likely to extend oil supply cuts until June

Reuters/Dubai/Moscow
Filed on November 21, 2019 | Last updated on November 21, 2019 at 10.05 pm
Opec meets on December 5 at its headquarters in Vienna.

(Reuters file)

Two main scenarios: meet in December and extend current cuts until June, or defer decision until early next year

Opec and its allies are likely to extend existing oil output cuts when they meet next month until mid-2020, with non-Opec oil producer Russia supporting Saudi Arabia's push for stable oil prices amid the listing of state oil giant Saudi Aramco.

The Organization of the Petroleum Exporting Countries meets on December 5 at its headquarters in Vienna, followed by talks with a group of other oil producers, lead by Russia, known as Opec+. The current oil supply cuts run through to March 2020.

"So far we have two main scenarios: either meet in December and extend the current cuts until June; or defer the decision until early next year, meet before March to see how the market looks and extend the cuts until the middle of the year," said an Opec source.

"It is more likely that we will extend the agreement in December to send a positive message to the market. The Saudis don't want oil prices to fall, they want to put a floor under the prices because of the [Saudi Aramco] IPO."


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