Saudi Arabia and Iraq agreed on 9 months extension on OPEC cut

Saudi Arabia and Iraq, two OPEC giants, have agreed on Monday on the need for extending global cut in oil supply so that oil price can rise.

Saudi Energy Minister Khalid al-Falih said that he did not expect any opposition within the Organization of the Petroleum Exporting Countries on the issue of extending global oil supply cut for next nine months.
In a joint news conference, he along with his Iraqi counterpart, Jabar Ali al-Luaibi, stated that Iraq has agreed on this proposal.

He mentioned, "All the countries within OPEC, which I have talked, will have agreed on a nine-month extension. Definitely there is no need to talk to all the 24 member states, however, I do not expect any objection within OPEC to the issue, but the decision will not be finalized until OPEC meeting on May 25 when all the countries sign on the extension decision.”

Iraqi Oil Minister Jabar Ali al-Luaibi said, "We agreed with the Kingdom (of Saudi Arabia) and the minister's call to extend oil output cut agreed on by OPEC last year for six to nine months."

On Thursday 25th may, a scheduled OPEC meet shall be held at Vienna. In that meeting crucial decisions would be taken, including prolonging the oil supply cut for further nine months. It is to be noted that 11 non-OPEC members, including Russia, have also agreed on the nine month supply cut proposal.