OPEC, non-OPEC to Meet on Same Day as Group’s May Gathering

OPEC plans to meet with non-OPEC oil producers on the same day as its scheduled May 25 conference, sources familiar with the arrangements said, as they decide whether to extend supply cuts into the second half of the year.

Ministers from the Organization of the Petroleum Exporting Countries will convene at their Vienna headquarters. Joint talks with non-OPEC oil ministers will also take place that day, two sources said.

A number of key OPEC members including top exporter Saudi Arabia support extending their supply-cut agreement into the second half of 2017 if all producers, including non-OPEC, also agree, OPEC sources have told Reuters.

The plan for same-day meetings suggests the issue will be settled more quickly than last year, when the deal was agreed. OPEC met on Nov. 30 to decide its own output cuts, and a gathering with non-OPEC took place more than a week later.

The schedule for May 25 is not final and could be changed nearer the time, the sources said.

Under the deal, OPEC is curbing its output by about 1.2 million barrels per day from Jan. 1 for six months in an attempt to eradicate a supply glut. Russia and 10 other non-OPEC producers agreed to cut half as much.

The accord has lifted oil prices, which are near $55 a barrel. However, still-large inventories and higher output from some producers such as the United States – which is not participating in the supply accord – have limited the rally.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell