OPEC is sounding likely to extend oil production curbs as meeting starts in Vienna

KEY POINTS
  • OPEC members are set to meet on July 1 in Vienna, followed by a meeting with non-OPEC states on July 2.
  • Russia, Saudi Arabia and the UAE all indicate that they want to continue production curbs. Meanwhile, OPEC member Iran called for unity among members of the cartel.
  • Oil prices rose sharply in the afternoon of Asian trading hours on Monday, with international benchmark Brent crude futures adding 2.58% to $66.41 per barrel. U.S. crude futures jumped 2.46% to $59.91 per barrel.
GP: OPEC 180620
The OPEC logo is seen at the Organization of the Petroleum Exporting Countries (OPEC) building in Vienna on June 20, 2018.
Omar Marques | SOPA Images | LightRocket via Getty Images

Ahead of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in Vienna, the most important oil producers there are indicating there’s likely to be an extension of a deal to curb oil production.

Speaking to reporters in the Austrian capital on Sunday, United Arab Emirates Minister of Energy and Industry Suhail al-Mazrouei said an extension of a deal originally struck in December last year — which called for an output cut of 1.2 million barrels per day — would likely be necessary.

“The current condition of the market, in my view, would require an extension,” al-Mazrouei said.

“I said that earlier when we were in … Jeddah for the” Joint Ministerial Monitoring Committee, he said, in reference to his comments from May that the job of OPEC and its allies to balance the oil markets was still incomplete. “We looked at the numbers. I don’t think they have changed much … since that time.”

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