OPEC and non-OPEC oil ministers will meet in Jeddah, Saudi Arabia today to discuss their oil production cut deal.
The Joint Ministerial Monitoring Committee (JMMC) will make a recommendation to OPEC about whether or not the production cut deal should be extended into 2019. The meeting will provide substantial guidance on how OPEC and its partners will proceed at their June 2018 meeting in Vienna.
The meeting will play out against a backdrop of falling stockpiles and geopolitical tensions that have lifted prices, which in turn risk encouraging more US supply.
Many bank analysts are declaring the oil glut largely resolved. This, they say, is evidenced by the fact that geopolitical tensions in the Middle East pushed oil prices up last week. The IEA agreed, saying that its data on global oil stocks supports the conclusion that OPEC and its partners have met their goal, Investing writes.
Earlier, Saudi Crown Prince Mohammed bin Salman said he wants long-term cooperation with Russia to stabilize oil prices. "We are working on moving from a model agreement for a year to a longer term - 10-20 years," he said.
Russian Energy Minister Alexander Novak said there were no concrete plans on long-term cooperation yet, while new proposals for cooperation will be discussed during an OPEC ministerial committee in Jeddah.