Saudi Arabia’s energy minister has flown to Baghdad in a last-ditch attempt to convince his Iraqi counterpart to back a nine-month extension to Opec production cuts before Thursday’s meeting in Vienna.
Saudi Arabia is the cartel’s biggest producer. Russia, the world’s biggest producer, has led co-ordinated cuts by non-Opec members. The two countries agreed last week that curbs in place for the first half of this year should be extended to March next year. However, Iraq, Opec’s second biggest producer, has indicated it would favour a deal for only a further six months. Khalid al-Falih’s visit to Baghdad, the first by a Saudi energy official in almost three decades, highlights the importance to Saudi Arabia of securing agreement.
Brent crude oil prices rose about 1 per cent to top $54 a barrel on Monday on optimism that a deal would be struck. Mohammed Barkindo, Opec’s secretary-general, said he saw growing consensus among the cartel’s members on the duration of an extension.
