Leaders of Russia and Saudi Arabia agreed to re-schedule the OPEC oil production agreement's expiry date. The current deal will be extended for nine months, until March 2020; Russian President Vladimir Putin said so afer his meeting with Saudi Crown Prince Mohammed bin Salman, as the leaders took part in the G20 Summit.
“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,” the Russian leader said as quoted by Reuters.
"Russia’s consent means the OPEC+ group may have a smooth meeting if OPEC’s third-largest producer Iran also endorses the arrangement", the news agency specified.
According to the politician, the sides agreed to extend the deal due to oil prices coming "under renewed pressure from rising U.S. supplies and a slowing global economy", as Reuters' article goes.
July 1-2, OPEC+ Group will hold a session to discuss the agreement, which would let the sides approve the limit of daily oil production to 1.2 million barrels per day.