OPEC looked set to extend its current deal to cut production for nine months as the oil cartel faces a weakening outlook for demand because of waning global growth.
Member country representatives were meeting yesterday at the Organization of the Petroleum Exporting Countries’ headquarters in Vienna and will hold talks with non-member producing states today.
The decision is complicated by tensions between the non- OPEC country U.S. and Iran that have sent prices higher.
Several key representatives said group members were falling into line behind a nine-month as opposed to a six- month extension. Saudi Arabia’s Energy Minister Khalid Al-Falih said “we will not know for sure until tomorrow” but that most countries “want nine months.”
And Iraq’s oil minister Thamir Ghadhban said nine months was “mostly likely.”
The current deal to support prices reduced production by 1.2 million barrels per day starting from Jan. 1 for six months.
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