(MENAFN- Kuwait News Agency (KUNA)) VIENNA, April 27 (KUNA) -- The OPEC and non-OPEC producers of the 'Declaration of Cooperation' to cut oil production will meet in Vienna on May 25 and are most likely to renew the deal for six months more, according to informed sources in OPEC.
Concluded in Vienna, Austria, in December 2016, the agreement brought together 24 of the world's leading oil producers committing them to remove around 1.8 million barrels/day of crude oil from global supplies as of January 1, of 2017 over an initial six-month period that can be extended for a similar period. The main aim of the deal is to restore balance on the world's oil market.
According to the deal, OPEC members are committed to cut production by around 1.2 million barrels per day (bpd), or over 3 percent, to 32.5 million bpd. Non-OPEC producers voluntarily decided to reduce output by 600,000 bpd. Russia alone will cut 300,000 bpd.
Reports by a technical committee affiliated to the Joint Ministerial Monitoring Committee showed that both the OPEC and non-OPEC producers have manifested high levels of commitment to the deal.
The OPEC Secretariat is now the venue of intensive technical meetings preparing for the ministerial gathering. More reports are being prepared on the developments of production and prices and commitment to the deal.
Referring to the decline of oil prices below USD 50 per barrel, the sources told KUNA that the decrease is temporary and is the result of a state of uncertainty due to the world's political developments. It is not related to supply and demand, and prices are expected to rise again thanks to commitment to the Vienna deal.
They also stressed the necessity of carrying on with the cooperation between the OPEC and non-OPEC producers, especially on the side of major producers Like Saudi Arabia and Russia.
During the Vienna meeting in December, Kuwait was selected to chair the Joint Ministerial Monitoring Committee. In March, the country hosted a meeting for the committee in March to assess commitment to the deal to cut production. (end) amg.msa
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