After Iraqi oil producers joined Saudi Arabia and Russia in endorsing a policy that aims to extend the oil supply cuts implemented in 2017, OPEC and its allies now seek to extend their cuts next week until at least the end of 2019.
Despite the overarching agreements between other OPEC member countries, Iran has been the only top-producing member that has remained silent on the issue of possible continued supply cuts. The push by other member countries to limit the supply of oil is an attempt to increase prices amid a weakening global economy.
In a meeting next Monday, OPEC leaders will decide whether to extend the pact or let it terminate after Sunday. Most OPEC countries fully support the extension of such pact, as continued supply cuts might allow the oil market to reach some stability amid the worsening global economy.
Iran’s decision will be known next Monday during the meeting, yet analysts argue that the worsening of American-Iranian relations might increase the price-oil volatility, something that OPEC members might struggle to manage with.