Algerian Minister of Energy Mohamed Arkab on Saturday said in Algiers that “all ministers of OPEC and non-OPEC countries endorse the principle of renewing the expiring oil output cut deal signed in Algeria last year,” APS news agency reported.
Arkab, also the vice president of OPEC, noted that “the respect of Algiers deal by both OPEC and non-OPEC members has been a success so far,” adding that his country was working to ensure the continuity of the prevailing balance in the oil markets.
On the sidelines of the G20 summit in Japan’s Osaka, Russian President Vladimir Putin announced that he had reached an agreement with another major oil producer, namely Saudi Arabia, to extend output deal to assure balanced prices.
The agreement between Riyadh and Moscow will be followed by the sixth meeting of oil ministers of the 14 OPEC member states and 10 non-OPEC members on Tuesday in Austria’s Vienna, to discuss renewing the oil output limitation deal for six or nine months.
OPEC and non-OPEC producing countries agreed in Sept. 2018 to reduce their production by 1.2 million barrels per day (MMBD) as by Jan. 1, 2019.
The deal aimed at adjusting production in the range of 32.5 million to 33 million barrels per day to stabilize the market.
The agreement boosted plunging prices, as they went from 40 U.S. dollars per barrel later last year to around 70 dollars a barrel nowadays.