OPEC works to extend deal and exit strategy

Almaty. October 25. Silkroadnews – The Organization of the Petroleum Exporting Countries (OPEC) is negotiating to extend the deal to cut oil production until the end of 2018, the Kazakh Telegraph Agency (KazTAG) reports with reference to Bloomberg.
At the same time, the organization started developing a strategy to quit the deal, an informed source told the agency.
The strategy is being developed to calm investors, assure them that OPEC will not flood the market with oil after the deal is completed, the report said.
It is also noted that OPEC countries can approve the preliminary plan at the meeting in Vienna on November 30, and the final version of agreement can be submitted in 2018.
To remind, at the end of 2016 OPEC and a number of non-OPEC states, including Kazakhstan and Russia, entered into production cut deal. The countries agreed to withdraw 1.8 million barrels per day from the market, with Russia in charge of 300,000 barrels and Kazakhstan – in charge of 20,000 barrels.
Initially, the agreement was concluded for the first half of 2017, afterwards it was extended until the end of March 2018.
The next meeting of the monitoring committee will be held on November 29 - one day before the conference in Vienna, where it is planned to discuss the issue of a possible extension of the deal after March 2018.