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OPEC is preparing to expand oil production




Saudi Arabia, the largest producer of OPEC and Russia, the cartel's most powerful allies, met over the weekend to discuss expanded supply tensions that were first introduced in 2017 after global oil prices crashed. The last cut rate would expire on Sunday.

Saudi oil minister Khalid Al-Falih met his Russian counterpart Alexander Novak on the sidelines of a summit of G20 leaders in Osaka, Japan.

"During the meeting, they discussed the possibilities for expanding the OPEC + agreement, as well as the cooperation in the oil and gas sector between the Kingdom of Saudi Arabia and Russia," said Saudi Press Agency.

OPEC's 1[ads1]4 member countries meet in Vienna on Monday to agree on a common position. They are joined by Russia and other partners on Tuesday.

Oil prices rose 2.4% on Monday pending an agreement to continue supply. The news of a cease-fire in the trade war between the United States and China also provided support.
  Ministers from OPEC members meet at the Group's head office in Vienna.
A proposal to transfer production slumps appears to receive support from Iran, Saudi Arabia's regional rival, despite increasing tensions between the two countries over the Yemen war and attacks on oil tankers in the Hormuz flow.

"We have no problem with an extension of six, seven or eight months," an older Iranian source told CNN Business.

It won't please President Donald Trump who, however, repeatedly demanded OPEC to pump more oil to keep US gas prices in check.

US sanctions against Iran helped drive prices sharply higher in the first four months of this year. Iran's oil exports have declined since the May expiry of exemptions, so some of its largest customers, such as India, can continue to buy without fear of US legal action.
The United States has taken over Saudi Arabia and Russia to become the world's largest oil producer, largely thanks to a boom in the Permian Basin in West Texas. Its imports from OPEC went to their lowest level in three decades earlier this year.



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