UAE Energy Minister Sukhel Mazrui said on the 11th that members of the Organization of Petroleum Exporting Countries (OPEC) are negotiating to extend the implementation period of crude oil production cuts, and consultations are coming to an end.
Mazrui said at an economic forum that, taking into account the current crude oil inventories of various countries, the measures to reduce production should be "prolonged at least until the end of this year."
OPEC and non-OPEC oil-producing countries reached an agreement last December and decided to reduce the daily production of crude oil by 1.2 million barrels from January this year, with an initial set-up period of six months. As the expiration date approaches, several oil-producing countries consider it necessary to extend the production cut-off period.
According to informed sources, OPEC is scheduled to meet on the 25th of this month to discuss the issue of production cuts. On the 26th, it will consult with non-OPEC oil producers such as Russia. However, the Russian proposal to postpone the consultation until July 3 to 4, Saudi Arabia has already agreed, and Iran is opposed to the rescheduling. Mazrui talked about the situation and said that the parties are discussing the date of specific consultations.
Some energy market analysts say that even if oil producers such as OPEC and Russia agree to cut production, US shale oil is still increasing. The US Energy Information Administration said in May that the United States intends to increase the average daily output of shale oil by 83,000 barrels in June, that is, the average daily output reached 8.49 million barrels.