Crude producers led by Saudi Arabia and Russia will aim to draft an agreement to formalise their partnership for oil market co-operation by the end of 2018, the UAE’s energy minister said.
Opec countries and allies outside of the cartel joined forces in 2017 to curb production and bolster the oil market after a three-year downturn. The 24 nations have pledged to reduce output by 1.8m barrels a day.
Oil officials have said in recent months they sought to institutionalise this alliance beyond the end of 2018 when the current cuts deal expires, but they have not given further details.
Suhail al-Mazrouei, Opec president, told the local National newspaper on Thursday that the charter for the broader group is currently “a work in progress”.
He did not elaborate on the nature of the partnership, its purpose or its obligations, but its creation underlines the severity of the recent price crash on oil-rich economies and the need to prevent further falls.
Source: FT.com
