Oil ministers in Russia and Saudi Arabia will discuss the possibility of easing the global production cap agreed by OPEC and Russia amid calls for increased production after a deal to cut oil production helped pushing prices to levels of $80.
The cut-off deal, which went into effect in January 2017, helped stop a three-year slump in oil prices.
With Venezuelan oil production collapsing and fears of US sanctions on Iran limiting exports, oil prices will rise, sparking calls for ending the cut-off deal. OPEC will meet Russia and other producers in Vienna on June 22 to determine the future of the deal.
Khaled Al-Falih and Alexander Novak, energy ministers in their countries, spoke during their meeting in Russia on easing output cap starting in June. The most prominent points were as follows:
- Output cap will definitely be discussed in June.
- The goal is for market balance.
- Russia and Saudi Arabia have at least two other meetings before June.
- Final decision is not taken, the output cap is on the table only for discussion at the moment.
