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OPEC, non-OPEC to meet on same day as group's May gathering - sources

Published 19/04/2017, 14:35
© Reuters. FILE PHOTO: A flag with the OPEC logo is seen before a news conference in Vienna
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LONDON (Reuters) - OPEC plans to meet with non-OPEC oil producers on the same day as its scheduled May 25 conference, sources familiar with the arrangements said, as they decide whether to extend supply cuts into the second half of the year.

Ministers from the Organization of the Petroleum Exporting Countries will convene at their Vienna headquarters. Joint talks with non-OPEC oil ministers will also take place that day, two sources said.

A number of key OPEC members including top exporter Saudi Arabia support extending their supply-cut agreement into the second half of 2017 if all producers, including non-OPEC, also agree, OPEC sources have told Reuters.

The plan for same-day meetings suggests the issue will be settled more quickly than last year, when the deal was agreed. OPEC met on Nov. 30 to decide its own output cuts, and a gathering with non-OPEC took place more than a week later.

The schedule for May 25 is not final and could be changed nearer the time, the sources said.

Under the deal, OPEC is curbing its output by about 1.2 million barrels per day from Jan. 1 for six months in an attempt to eradicate a supply glut. Russia and 10 other non-OPEC producers agreed to cut half as much.

© Reuters. FILE PHOTO: A flag with the OPEC logo is seen before a news conference in Vienna

The accord has lifted oil prices (LCOc1), which are near $55 a barrel. However, still-large inventories and higher output from some producers such as the United States - which is not participating in the supply accord - have limited the rally.

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