OPEC, allies look at plans for prolonged oil supply restraint

Barkindo in Washington to talk US into OPEC deals
Secretary General of the Organisation of Petroleum Exporting Countires (OPEC), Mohammed Barkindo

OPEC and allied producers are looking at a “continuity strategy” for oil supply management, OPEC’s secretary general said on Wednesday, signaling plans for further cooperation beyond the end-2018 expiry of a supply cut deal.

The Organization of the Petroleum Exporting Countries, Russia and other non-OPEC producers on Nov. 30 extended an oil output-cutting deal until the end of 2018 to finish clearing a glut. But the market is interested in how producers will exit the deal once the excess is cleared.

“We are designing a framework for a continuity strategy for supply management to help ensure a stable and sustainable oil market,” OPEC Secretary General, Mohammad Barkindo said in a speech in China.

Any exit strategy would be gradual, Kuwait’s oil minister said earlier on Wednesday.

Agency Report