Comments by Russia’s energy minister, Alexander Novak
- No proposal to extend cuts longer than 9 months
- Iran confirmed in meeting that 9-month extension is good
- All current OPEC+ quotas will be retained in the extension
It’ll be interesting to see how long the optimism here can last for oil. Nine months is certainly better than six months but with the same production quotas being restricted, I doubt it’ll help to address the oversupply issue in the market or at least it will struggle to do so.
We’ve already seen the struggles in 1H 2019 and what more in the second half of the year when seasonal demand tends to suffer a little more during the summer time.
