Photo by China News Service reporter Xu Shuchen. The Organization of the Petroleum Exporting Countries and its allies look to decide to continue to cut production in the next week until at least the end of 2019, as Iraq joins the camps of major oil-producing powers Saudi Arabia a

data photo China News Agency reporter Xu Shuchen

The Organization of Petroleum Exporting Countries (OPEC) and its allies look to decide to continue to cut production until at least the end of 2019 in the next week, as Iraq joined the camps of major oil-producing countries Saudi Arabia and Russia on Sunday, supporting the extension of production cuts aimed at boosting crude oil prices.

reported that the United States is not a member of the OPEC and has not participated in the production cut agreement. After imposing new sanctions on Iran 4, the U.S. government has asked Saudi Arabia to increase oil production to fill the gap caused by Iran's decline in exports.

Russian President Putin said last Saturday that he and Saudi Arabia agreed to extend the existing 1.2 million barrels per day policy to cut production by six to nine months until December 2019 or March 2020. This production cut is about 1.2% of global demand.

Saudi Energy, Industry and Mineral Resources Minister Falih said the most likely issue of the production cut agreement is to extend nine months and there is no need for further production cuts.

Warren Patterson, head of commodity strategy at ING, Bank of Dutch Bank, said that if the agreement cannot be extended, OPEC may suffer greater losses. "The key is whether oil prices can be balanced. When oil prices are about $85 per barrel, Saudi Arabia can balance revenue and expenditure, so Saudi Arabia will be worried about the possibility of widening the gap between the level and market price."

Iraqi oil minister Gabban said last Sunday that he expected the agreement to be extended by six to nine months, but Iraq is open to the matter. Gaban said, "The most important thing is to achieve market stability and avoid shocks, and try to deal with (excess) high-inventory."

Gaban fully supports extending the production cut agreement to the end of the year. He said that he would not object if he reached a consensus on the production cut agreement to be extended to nine months.

Iran is the only major OPEC member who has not yet made public statements on the need to extend production cuts. According to reports, Iraq has surpassed Iran to become OPEC's second largest oil producer. Investments from large Western oil companies have caused Iraq's oil exports to rise steadily.

It is reported that the Organization of Petroleum Exporting Countries and other major oil producers have agreed to cut their total oil output, but the agreement will expire at the end of this month. Negotiations on whether to extend the deal are scheduled to be held in Vienna from July 1 to 2.

(Editor in charge: Carina Li)