Referring to its own sources, the reputable Bloomberg agency reports that OPEC has invited the members of the organization and partners in the OPEC+ transaction to a meeting. It was scheduled as early as in December, but will take place in early March.
There wasn’t a cartel’s emergency meeting in February due to the impact of a new epidemic on the market. Russia had a negative reaction on this idea. The summit participants were supposed to agree on an additional reduction in production amid falling demand.
This month, the OPEC+ technical committee has recommended to extend the current deal to reduce production by 1.7 million barrels per day. The current agreement expires in March. The deal is proposed to be extended until the end of the year as well as to provide an additional reduction in the second quarter by 600 thousand bpd. This recommendation will be considered by the ministerial committee, after which the ministers will make a final decision.
Alexander Novak, the Minister of Energy of Russia, believes that there is no need to rush into impact assessment of the Chinese coronavirus on the market. He believes that everything should be properly analyzed. On February 12, there was a meeting of domestic companies in the Ministry of Energy of the Russian Federation. They supported the extension of the transaction with OPEC for the next quarter. The OPEC+ ministerial meeting will be held on March 5-6 in Vienna.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group