Opec set for rollover, to discuss more curbs

MUSCAT/LONDON: Dubai Mercantile Exchange (DME) said that Oman oil price for August delivery reached $64.32.
The DME on Thursday statement said that the price of Oman oil rose 22 cents from the price of Wednesday, which was $64.10.
The average price of Oman oil for July delivery has stabilised at $69.99, thus $1.17 per barrel lower than June delivery.
Meanwhile, Opec is expected to roll over a deal on cutting supplies at a meeting next week and discuss deepening the curbs that have been in place since January 1, Iraq’s oil minister said on Thursday.
A deal between the Organization of Petroleum Exporting Countries (Opec) and allies including Russia to curb output by 1.2 million barrels runs out at the end of June. Meetings on July 1-2 in Vienna will discuss
the next steps.
“The rollover at least would be at the same level because it has not been very effective, it has been effective to a certain level to minimise the glut in the market, but there are now ideas or calls for agreeing (on) even more,” Oil Minister Thamer Ghadhban said.
He said the issue would be discussed in Vienna but declined to specify what alternative level of cuts were being suggested. Sources said this month that Algeria had floated an idea of deepening the cut by some 600,000 bpd.
Ghadhban also told reporters in London that Exxon had completed an evacuation of its staff from an oilfield in southern Iraq for security reasons. Contractual wrangling and security concerns have held back a $53 billion deal with the US energy giant to boost Iraq’s oil output.
Ghadhban said the two sides were drawing up a heads of agreement, adding one snag related to pricing and inflation adjustments remained.
“We are now working on final draft of our agreement. The point has to do with pricing, inflation and deflation, related to cash flow how to look at price and returns. It’s purely a technical point, not political,” the minister said. — Agencies