On Saturday, the 29th of June, Russian President Vladimir Putin said that he had reached an accord with Saudi crown prince, Mohammed bin Salman, to extend OPEC+ deal by six to nine months, which was due to expire by Sunday (June 30th).
Latest announcement of Russian President came forth amid a time, when oil prices had been put under tremendous pressure from a stubborn US inventory rise alongside a sluggish global economy curbing oil demands. In fact, after holding a talk with Saudi Crown Prince, Mohammed bin Salman, over the sidelines of latest G20 summit in the Japanese city of Osaka, Putin said at a news conference that the OPEC+ deal, reached during last December on Vienna about an output cut of 1.2 million barrels per day, would be extended for 6-9 months in its current form and same volume.
Besides, the OEPC+, an alliance of OPEC (Organization of Petroleum Exporting Countries), a 14-nation pact of oil exporters, and Russia alongside other producers, is set to meet by July 1st-2nd to discuss about the details of the deal.
After holding a talk with Saudi Crown Prince, Putin said in the news conference, “We will support the extension, both Russia and Saudi Arabia. As far as the length of the extension is concerned, we have yet to decide whether it will be six or nine months.
Maybe it will be nine months”. However, if the third largest OPEC+ crude oil producer, Iran, endorses the deal over next week’s OPEC+ meeting, the Crude market would cheer the outcome and a crude oil future price bull-run would likely to start off when the financial markets are scheduled to open next Monday (July 1st).