President Vladimir Putin said last week that Russian Federation and the Organization of the Petroleum Exporting Countries disagreed over what constituted a fair price for oil, but that they would take a joint decision at the policy meeting. -China trade war fuels concern that demand will ebb.
Oil has tumbled from a 2019 peak above $75 a barrel in April to $61 a barrel now on concerns about weakening demand due to a U.S. Recently, the Russian Energy Minister Alexander Novak remarked that there was a need to control the oil market to take a sensible decision in July.
The U.S. Energy Information Administration cut its 2019 world oil demand growth forecast by 160,000 barrels per day, to 1.22 million Bpd (Mmbpd).
Nearly every member of the 24-country coalition is on board with a rollover of the agreement, except for Russian Federation, which has been vacillating over how much production it was willing to cut, Falih said in an interview with Tass news agency earlier Monday."All the big producers in OPEC, as well as many non-OPEC countries like Oman, Kazakhstan, Azerbaijan have also supported the extension", Falih said.
Many oil exporting countries have confirmed they are prepared to hold a policy meeting with OPEC in Vienna over July 2-4, instead of the scheduled date later this month, Novak said.
Saudi Energy Minister Khalid Al-Falih has talked up the prospects for an agreement to extend, and said Monday that producer countries would strive to prevent a price slump below $40.
OPEC is close to reaching an agreement to extend the production cut deal beyond June, al-Falih said on Friday from Russian Federation, adding that the sticking point is now to calibrate the cuts with the non-OPEC group of producers led by Moscow.
China's crude oil imports slipped to around 40.23 million tonnes in May, from an all-time high of 43.73 million tonnes in April, customs data showed, due to a drop in Iranian imports caused by USA sanctions and refinery maintenance.
But Saudi Arabia needs oil at $85 to balance its budget, so the leaders of the two OPEC+ groups are (again) at odds over what they see as a "fair price" for oil.
There won't be a need to deepen the cuts, while the situation with oil supply in Iran, Venezuela, and other countries will show if OPEC and allies need to scale back the cuts "a little bit", al-Falih said, as carried by Bloomberg.