OPEC+ can extend oil production cuts and introduce a new type of agreement after 2018. It was stated by Oman’s oil minister Mohammed bin Hamad al-Rumhi said after OPEC+ meeting in the capital of Oman.
He told the reporters, oil inventories will have been reduced by the end of the year. By that time OPEC and non-OPEC members should renew the agreement, should understand whether they will extend it. Or, perhaps, they should introduce a new type of agreement. He personally is in favour of a new type of agreement. Rumhi also said that global oil producers were due to discuss in November this year whether to renew their cooperation agreement on supply cuts or enter a new type of agreement. But that really depends on the other members.
Saudi Arabia's Energy Minister Khalid al Falih also noted that oil inventories are still 120 million barrels higher than 5-year average level.
Russian Energy Minister Alexander Novak noted that the possible exit from the deal depends not only on the price. He emphasized that market should fully rebalance and the members of OPEC+ should join their efforts and continue the deal till the targets are reached.