OPEC and its allies are likely to extend their oil-cuts agreement later this year to keep prices at a “comfortable” level, Bloomberg reported, citing Azerbaijan’s energy minister Parviz Shahbazo.
An extension of the agreement at the Organization of Petroleum Exporting Countries’ ministerial summit in April would probably be for another six months, before a further review, the minister told the news agency.
In December, OPEC+ agreed to remove 1.2 million barrels a day through the first half of 2019, which has pushed up crude prices 15 percent this year to date.
Azerbaijan, an OPEC partner, agreed to reduce output by 20,000 barrels a day in the first half and is likely to open the taps in the second half if the deal isn’t extended, Shahbazov added.
“If the price settles in the $60 to $70 corridor, it will be very positive for our economy, for our plans and is the best price for producers and consumers," he stated.
Benchmark Brent crude was trading around $62.27 midday Thursday.
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