The President of the organization of petroleum exporting countries (OPEC) said in a letter Tuesday that OPEC and its russia-led Allies will face problems planning crude oil exports if they cannot set a date for an emergency meeting, the Wall Street journal reported Tuesday.
In a document circulated within OPEC, Venezuelan oil minister Manuel Quevedo, OPEC's President, said the group urgently needs to meet to decide on its plans for at least the second half of the year, the report said.
After the current agreement to cut production by 1.2 million barrels a day expires on July 1, export quotas for next month have been set, Mr. Kovedo said. Mr. Kovedo suggested a July 1-2 meeting, while Iran and Russia proposed a July 10-12 meeting, which was postponed from June 25-26 at Russia's request.
In an effort to balance the oil supply and demand market, OPEC+ and its production partners agreed last year to cut production from January 1 this year to avoid oversupply, according to the Shanghai securities news. Under the deal, they cut production by 1.2m b/d for six months, based on October last year. Now the cut is about to expire. The Opec meeting, scheduled for the end of June, will decide whether and by how much.
Speaking at BBS last week, the uae's energy minister said the agreement should be maintained or "extended at least until the end of the year" given existing oil inventory levels, the report said.