Oil prices continued their upward momentum on Friday, following a week of geopolitical uncertainty and bullish industry news.
Oil prices closed out the first quarter on a high note, with Brent hovering around $70 and WTI at $65. Rising geopolitical concerns – declines in Venezuela and fears that the U.S. will step up confrontation with Iran – are elevating crude prices.
There have been rumors for some time that OPEC and Russia are looking at ways of institutionalizing their cooperation beyond the current production cut agreement, which may or may not expire at the end of this year.
Reuters reported this week that they are working on something much more ambitious than previously thought: OPEC and Russia are looking at solidifying their cooperation for the long-term.
“We are working to shift from a year-to-year agreement to a 10 to 20 year agreement,” Saudi crown prince Mohammed bin Salman told Reuters in an interview on Monday. “We have agreement on the big picture, but not yet on the detail.”
OPEC and its non-OPEC partners are reportedly considering an extension of the current production cut agreement for six months, through mid-2019, according to Iraqi oil minister Jabbar al-Luaibi. “By the end of this year, we will assess and decide how to go ahead,” he said at the
Iraq Energy Forum. “Some are suggesting a three-month extension, some suggest a six-month extension.”
