🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

OPEC seeks 'very long-term' cooperation with other oil exporters

Published 28/03/2018, 11:44
© Reuters. FILE PHOTO - A man fixes a sign with OPEC's logo next to its headquarter's entrance before a meeting of OPEC oil ministers in Vienna

By Ahmed Rasheed

BAGHDAD (Reuters) - OPEC is seeking "very long-term" cooperation with other oil exporters, the secretary general of the oil exporting group said on Wednesday.

Mohammad Barkindo was commenting on news that top OPEC producer Saudi Arabia and non-OPEC Russia were working on a long-term pact that could extend controls over world crude supplies by major exporters for up to 20 years.

Saudi Crown Prince Mohammed bin Salman announced the plan in an interview with Reuters on Monday.

Russia, the world's biggest oil producer, has worked with the 14-member Organization of the Petroleum Exporting Countries in previous oil gluts to rein in supplies and push up prices, but a 10 to 20-year deal between the two would be unprecedented.

"We are looking for a very long-term cooperation between OPEC and non-OPEC producing countries," Barkindo told an energy conference in Baghdad.

OPEC states, Russia and several other non-OPEC producers agreed to cut supplies from January 2017 to lift oil prices that plunged from above $110 a barrel in 2014 to below $30 in 2016.

A deal to extend the pact, which has boosted prices to around $70 now, was agreed in November. The output cuts are now due to run until the end of 2018.

"In addition to the 24 countries that came to sign the declaration of cooperation in November, we have six more producing countries who came to show solidarity," he said.

Several oil exporters have suggested a six-month extension to the supply pact, Iraqi Oil Minister Jabar al-Luaibi told the conference, without identifying the countries.

© Reuters. FILE PHOTO - A man fixes a sign with OPEC's logo next to its headquarter's entrance before a meeting of OPEC oil ministers in Vienna

The market for crude was stabilising and prices had "improved", he said, adding that a decision on whether to extend cuts beyond 2018 depended on meetings to be held by the exporters by the end of this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.