OPEC, non-members said to consider extending, deepening oil output cuts

OPEC is considering extending or deepening its agreement to limit crude oil output with a group of non-member oil producers, leaving open the option of further action to boost prices, Reuters reported on Wednesday, citing the Iranian and Venezuelan oil ministers.

OPEC and non-members have agreed to trim production by a combined 1.8 million barrels per day (mbd) until March 2018. 

Iranian oil minister Bijan Zanganeh said he saw no objection among OPEC members to extending or even deepening the deal.

“It depends on a collective decision and consensus within OPEC, but I think there is no objection against this proposal,” he said.

Meanwhile, Venezuela's oil minister Eulogio del Pino also said that discussions were ongoing on whether to cut further or extend the deal. 

OPEC has called on other producers to join the agreement, Del Pino said, adding that 10 to 12 more countries in South America and Africa have been invited to participated.

If the coalition is able to get more oil producers to join their ranks, that would offset the need to extend or deepen cuts, the minister said, cited by Platts. 

“Maybe we don't need to expect another extension, we could have actions to accelerate that balancing,” he said.

The minister also said that he had spoken with Egypt on Tuesday, and fellow OPEC member Equatorial Guinea was recruiting seven African countries, including Uganda, Chad and Congo.

Earlier this week, Russian energy minister Alexander Novak said Turkmenistan could also join.