OPEC discusses delay of key meeting until July 11-12

Just a week before OPEC and the Allies met in Vienna to discuss the fate of the production-cut agreement that expires in less than two weeks, the participants are still discussing when to hold the crucial talks, with OPEC discussing a proposal to delay the meeting. On July 11 and 12, S & P reported Global Platts on Tuesday, referring to two sources.

While OPEC and Russia have been keen to try to secure the markets that they want to work towards a solution to balance the oil market, reports in the last few weeks began that the parties did not even agree to hold the meeting as planned 25. 26. June or to push it into July.

Reports have it that Russia has requested a delay of the June meeting in early July, so that it will be held after the G20 summit in late June, while Iran, which is in violation of the Arab Gulf members of OPEC , reportedly told the cartel that it would not agree with a launch of the key meeting.

Khalid al-Falih, the energy minister for OPEC's largest producer and de facto leader, Saudi Arabia, on Sunday again hoped that the cartel would get an agreement to expand the cuts into the second half of the year at a meeting that is likely to be held in the first week of July.

Related: OPEC target for $ 60- $ 70 oil

The last rumored meeting place on July 1[ads1]1 and 12 would be a week later than what Saudis suggested for two days ago, but it would be fine for Iran, if oil minister Bijan Zangeneh said on Monday that the Islamic Republic "would confirm the rescheduling of the upcoming OPEC meeting only if it were to be held July 10, 11 or 12 from the original 25. June."

Zangeneh does not want the date to be changed to July 3-4, when Russia had allegedly originally requested because of conflict planning.

According to an OPEC delegate who spoke to Bloomberg, the cartel proposed on July 10-12 the dates of its members and would wait for their answers.

Judging from the comments of various OPEC and non-OPEC officials and ministers and from reports from sources, the OPEC + group will not decide on production downsets by the time these cuts expire in late June.

By Tsvetana Paraskova for Oilprice. com

More top readers from Oilpr ice.com: