In separate statements just hours apart on Monday, the world’s largest crude producers said publicly for the first time they would consider prolonging their output reductions for longer than the six-month extension widely expected to be agreed at the OPEC meeting on May 25.
"We are discussing a number of scenarios and believe extension for a longer period will help speed up market rebalancing” the Russian Energy Minister Alexander Novak said in a statement.
Read also: What's behind the surprise oil cut?
Oil advanced after Novak’s
comments, with Brent crude gaining 0.6 percent to $49.38 a barrel at 9:49 a.m.
in London.Russia and
“The producer coalition is
determined to do whatever it takes to achieve our target of bringing stock
levels back to the five-year average,” Al-Falih said. While
As OPEC and its allies curbed
supply, production in the
“Given the extent of the over-hang I think they always knew the market was not going to rebalance in six months which is why our base case was always for a deal lasting at least one year, and if not longer,” said Virendra Chauhan, an analyst at industry consultant Energy Aspects. “Market expectations were lofty, and so OPEC will need to surprise the market with either a deeper cut, or possibly a longer than six-month extension to get prices to move higher.”