The participants of the OPEC+ deal have recently discussed the efficiency of the deal. Having discussed the results, they decided to change a range of criteria. To do so, they may well have to extend the OPEC+ deal, Bloomberg reports.
The OPEC+ summit took place on March 19th, in the OPEC’s headquarters in Vienna, Austria. The meeting was held behind the closed doors. So, the reporters didn’t manage to find out the details of the meeting. However, Bloomberg managed to get some info about the topics discussed there from anonymous sources participating in the OPEC+ summit.
The biggest change offered during the meeting has to do with changing the basic period of commercial oil inventories. The current agreement is based on 5 years, and the period is offered to be extended up to 7 years. Over the last 5 years, the crude oil inventories have been extremely high, which was one of the reasons why the crude oil prices crashed in 2014. By the way, this is something that Russia and Saudi Arabia previously mentioned.
If the offer is accepted, the OPEC+ participants are expected to take more time than expected (late 2018) in order to cut down on their oil inventories. If the offer is denied, the OPEC+ goals will be reached in Q2 or Q3 2018.
Also, the OPEC+ participants were offered to change the system monitoring their commercial oil inventories by taking into account all of their oil inventories worldwide. The next summit of the OPEC+ ministers is scheduled for April 15th.
