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Business

OPEC prepared to call "extraordinary meeting" as an oil case




Just a few weeks after OPEC and its partners agreed to another production downturn, the cartel is ready to expand these cuts as international prices continue to fall.

Reuters reports, with reference to the UAE oil minister, that OPEC is prepared to call an extraordinary meeting as it goes into "any" mode yet again.

Earlier this month, OPEC, Russia and nine more manufacturers agreed to reduce their total oil production by 1.2 million barrels daily, with OPEC's 800,000 bpd share. But the news failed to impress on a market that was worried about global economic growth and thus demand for crude oil.

UAE's Suhail al-Mazrouei said at a press conference in Kuwait that it would not be a problem for the cartel to extend the period of cuts, originally set to four months, beginning in January.

"What if the 1[ads1].2 million barrels are not enough? I tell you that if not, we meet and see what is enough and we will do it," says Mazrouei, adding "The Plan (to cut oil production) is well studied, but if it does not work, we always have the power in OPEC to call an extraordinary meeting. If we are to be extended for another six months, we will do so … I can assure you that an extension will not be a problem. "

While OPEC's mood seems to be on the worried side, argus Media expects oil prices to stabilize in early 2019, when the cuts take effect. CNBC reports, referring to the energy database, that it sees Brent commodity on average. $ 65 a barrel in the first quarter of 2019, rising to $ 68 a barrel in the second quarter and on to the low US 70s in the third quarter of 2019.

By Irina Slav for Oilprice.com

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