OPEC+ agreement extended for nine months

OPEC+ countries, led by Russia, agreed on Tuesday a new extension for 9 months of the deal to reduce oil production. The fact that the agreements need to be extended (they expired on June 30), Vladimir Putin said at the G20 summit in Osaka on June 29.

This means that Russian oil companies, including Rosneft, which protested against the extension of the agreement, will not be able to increase production until 2020.

Rosneft explained its dissatisfaction with the fact that while Russia will cut production, the US will increase the volume of shale oil and gradually force Russia out of the market. Rosneft is also concerned about the limitation of production (and profit): if the agreement had not been extended, production would have increased by 3-4%, and with the agreement, its growth will not exceed 1%. Rosneft was even going to demand compensation from the government in the event of an extension of the agreement, but First Deputy Prime Minister Anton Siluanov refused to do so.

• The OPEC+ agreement was concluded in December 2016 and has been repeatedly extended. In the latest edition, it provides for a reduction in oil production by all participating countries by 1.2 million barrels per day in order to increase oil prices.