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An oil pump jack in an oil field near the city of Almetyevsk. (Photo Credit: Yegor Aleyev/TASS)

OPEC+ is set to extend production cuts to prop up the oil market after a breakthrough in high-stakes negotiations, with the alliance to hold discussions on Saturday to formally sign off on the deal.

After almost a week of wrangling, OPEC+ leaders Russia and Saudi Arabia clinched a tentative deal with holdout member Iraq, according to a delegate. The pair were pushing Iraq to stop shirking its share of cuts and even to compensate for failure to comply with cuts in the past. OPEC is set to start its meeting Saturday at 2pm CET, followed by the OPEC+ meeting at 4pm CET, delegates said.

The agreement — though still to be ratified — means OPEC+ will extend its record production curbs for another month until the end of July. Brent crude, the global benchmark, edged higher and rose above $40 a barrel.

The 23-nation partnership between the Organization of Petroleum Exporting Countries and other major producers has helped engineer a doubling in Brent prices since April. The oil price surge has revived the fortunes of major energy companies like Exxon Mobil Corp. and Royal Dutch Shell Plc, and reduced the fiscal hole in the budgets of oil-rich nations.

Failure to reach an agreement this month could have brought millions of barrels of oil onto the market, undermining a tentative recovery as the coronavirus lockdown eases. With U.S. shale production starting to come back online, OPEC’s careful management of the demand recovery is crucial.

OPEC+ is set to extend production cuts to prop up the oil market after a breakthrough in high-stakes negotiations, with the alliance to hold discussions on Saturday to formally sign off on the deal.

After almost a week of wrangling, OPEC+ leaders Russia and Saudi Arabia clinched a tentative deal with holdout member Iraq, according to a delegate. The pair were pushing Iraq to stop shirking its share of cuts and even to compensate for failure to comply with cuts in the past. OPEC is set to start its meeting Saturday at 2pm CET, followed by the OPEC+ meeting at 4pm CET, delegates said.

The agreement — though still to be ratified — means OPEC+ will extend its record production curbs for another month until the end of July. Brent crude, the global benchmark, edged higher and rose above $40 a barrel.

The 23-nation partnership between the Organization of Petroleum Exporting Countries and other major producers has helped engineer a doubling in Brent prices since April. The oil price surge has revived the fortunes of major energy companies like Exxon Mobil Corp. and Royal Dutch Shell Plc, and reduced the fiscal hole in the budgets of oil-rich nations.

Failure to reach an agreement this month could have brought millions of barrels of oil onto the market, undermining a tentative recovery as the coronavirus lockdown eases. With U.S. shale production starting to come back online, OPEC’s careful management of the demand recovery is crucial.
OPEC+ is set to extend production cuts to prop up the oil market after a breakthrough in high-stakes negotiations, with the alliance to hold discussions on Saturday to formally sign off on the deal.

After almost a week of wrangling, OPEC+ leaders Russia and Saudi Arabia clinched a tentative deal with holdout member Iraq, according to a delegate. The pair were pushing Iraq to stop shirking its share of cuts and even to compensate for failure to comply with cuts in the past. OPEC is set to start its meeting Saturday at 2pm CET, followed by the OPEC+ meeting at 4pm CET, delegates said.

The agreement — though still to be ratified — means OPEC+ will extend its record production curbs for another month until the end of July. Brent crude, the global benchmark, edged higher and rose above $40 a barrel.

The 23-nation partnership between the Organization of Petroleum Exporting Countries and other major producers has helped engineer a doubling in Brent prices since April. The oil price surge has revived the fortunes of major energy companies like Exxon Mobil Corp. and Royal Dutch Shell Plc, and reduced the fiscal hole in the budgets of oil-rich nations.

Failure to reach an agreement this month could have brought millions of barrels of oil onto the market, undermining a tentative recovery as the coronavirus lockdown eases. With U.S. shale production starting to come back online, OPEC’s careful management of the demand recovery is crucial.