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By Yuka Obayashi
KARUIZAWA, Japan (Reuters) – Saudi Energy Minister Khalid al-Falih said on Sunday that OPEC likely to meet in Vienna during the first week of July and hoped that he would reach a consensus on the renewal of his agreement to reduce oil production.
Falih said earlier this month that OPEC was about to agree to the extension of the agreement beyond June, although further negotiations were needed withOPEC countries that were part of the production agreement.
The Organization of Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, have an agreement to reduce the production of 1.2 million barrels per day (bpd) from 1 January. The deal ends this month and the group is meeting in the coming weeks to decide on his next move.
"We hope to reach a consensus to extend our agreement when we meet in two weeks in Vienna," Falih told the press at a G20 ministerial meeting on energy and the environment in Karuizawa, northwest of Tokyo.
Asked about the date of the meeting, he replied: "Probably the first week of July".
It was not entirely clear whether the agreement would also include OPEC+
OPEC was scheduled to meet on 25 June, followed by talks with Russia's allies on 26 June. But Russia has suggested changing the date from July 3 to 4, according to sources within the group.
Falih said that demand for oil is generally increasing in the second half of the year, with refineries returning from maintenance and seasonal demand increasing, and the new deal would help rebalance the market.
"I'm pretty confident that the fundamentals are going in the right direction," he said.
(Report by Yuka Obayashi, edited by Michael Perry)
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