• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 6 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 2 hours Trump eyes massive expulsion of suspected Chinese spies
  • 1 hour >>The falling of the Persian Gulf oil empires is near <<
  • 3 mins KSA taking Missiles from ?
  • 1 hour A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 3 hours Saudi Arabia Can't Endure $30 Oil For Long
  • 8 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 12 hours Where's the storage?
  • 53 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 12 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 14 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 19 mins There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 12 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

OPEC And Partners Officially Ratify New Deal

Russia and the other non-OPEC members of the production cut pact first sealed in 2016 have officially ratified an extension of the latest round of cuts agreed last December, Energy Minister Alexander Novak said at the OPEC meeting in Vienna today, after crafting the details of the deal a day earlier.

CNBC reported that OPEC had agreed to extend the cuts—of a total 1.2 million bpd—until the end of March 2020 as prices stubbornly refuse to rise much above the US$60-65 band.

The news comes on the heels of earlier reports that Russia, Saudi Arabia, and Iraq had declared their support for another extension of the cuts. Iran also agreed to the extension yesterday despite the growing internal divide in the oil-exporting cartel.

The decision to extend the cuts is not particularly surprising. With relentlessly rising U.S. oil production, OPEC has few good moves left, if any. Russia has repeatedly noted it would be happy with lower oil prices than its Middle Eastern partners but even so it has once again agreed to continue cutting. Some saw in this a deal, in which the Middle Eastern partners—notably Saudi Arabia—would compensate Moscow for the inconvenience of having to sell less oil with investment contracts in energy and other sectors.

This compensation may not, however, eliminate the risk of Rosneft demanding its own compensation for production restrictions: last month chief executive Igor Sechin said the company would be seeking such compensation from the Kremlin if it agreed to support an extension of the cuts.

What is perhaps more worrying for OPEC is that oil prices reacted weakly to the news: Reuters reported earlier today Brent and WTI had both retreated from the spike that followed the initial announcement of the cuts agreement, pressured by trader worry about the prospects of the global economy in the context of the U.S.-Chinese trade war.

At the time of writing, Brent crude was trading at US$64.87 a barrel and West Texas Intermediate was trading at US$58.91 a barrel, both down from opening.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News