Exit strategy of global cuts to be discussed before June

Saudi Arabian Energy Minister Khalid al-Falih, Russian Energy Minister Alexander Novak, Kuwaiti Oil Minister Essam al-Marzouq and OPEC Secretary General Mohammad Barkindo attend a meeting of the 4th OPEC-Non-OPEC Ministerial Monitoring Committee in St. Petersburg, Russia, in this July 24, 2017 photo. (REUTERS)
Updated 11 December 2017
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Exit strategy of global cuts to be discussed before June

KUWAIT: OPEC and other oil producers will study before June the possibility of an exit strategy from the global oil supply-cut agreement, Kuwait’s oil minister Essam Al-Marzouq said on Sunday.
“There are still meetings every couple of months for the ministerial monitoring committee, and there will be a study formed for the possibility of an exit strategy ... before June,” he told reporters.
Both OPEC and non-OPEC producers led by Russia have agreed to extend oil output cuts until the end of 2018 as they try to clear a global oil glut while signaling a possible early exit from the deal if the market overheats.
OPEC meets next in June, while the next meeting for the ministerial monitoring committee, known as the JMMC, is due to be held in January in Oman.
Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn’t flip into a deficit too soon, prices don’t rally too fast and rival US shale firms don’t boost output further.
Moscow needs much lower oil prices to balance its budget than OPEC’s leader Saudi Arabia, which is preparing a stock market listing for national energy champion Aramco next year and would hence benefit from pricier crude.
Russian Energy Minister Alexander Novak said on Wednesday that it was too early to talk about a possible exit from the global deal to cut oil production, and the eventual withdrawal from the agreement should be gradual.
Novak said the process of exiting the deal may take between three and six months, depending on how the global oil market has recovered by then, and on the scale of oil demand.
Under the current deal the producers are cutting supply by about 1.8 million barrels per day.
— Reuters


Militants kill 10 Iran Guards at Iraqi border post: Agency

Updated 2 min 50 sec ago
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Militants kill 10 Iran Guards at Iraqi border post: Agency

  • The agency quoted a Revolutionary Guards statement as saying that several of the attacking "terrorists" were also killed in the fighting in which a munitions depot was blown up
  • There is little coordination between Iranian and Iraqi forces over security of the porous border that has also been used by Daesh to enter Iran

DUBAI: Militants killed 10 Iranian Revolutionary Guards in an attack on a post on the Iraqi border on Saturday, Iran's semi-official Tasnim news agency reported, the latest deadly clash in an area where armed opposition Kurdish groups are active.
The agency quoted a Revolutionary Guards statement as saying that several of the attacking "terrorists" were also killed in the fighting in which a munitions depot was blown up.
Provincial security official Hosein Khosheqbal told state television that 11 members of the Guards' voluntary Basij forces were killed in the overnight violence in the Marivan area, which he blamed on the Kurdish armed opposition group PJAK.
"The latest news is that the Basij and Guards forces are in hot pursuit of the attackers," Khosheqbal said.
The Party of Free Life of Kurdistan (PJAK) -- an outlawed group that seeks self-governance for Iran's Kurds and has links to Turkey's militant Kurdish Workers' Party (PKK) -- operates in the border area, along with other armed Kurdish groups based in northern Iraq.
Earlier this month, the Revolutionary Guards said they had killed three militants in a security operation near the border with Iraq, and nine militants were reported killed by the Guards last month further north on the border.
There is little coordination between Iranian and Iraqi forces over security of the porous border that has also been used by Daesh to enter Iran.
Intelligence Minister Mahmoud Alavi said on Tuesday that security forces in southwest Iran arrested four suspected Daesh operatives who were planning attacks.
In June 2017, Daesh militants carried out coordinated attacks at the parliament building in Tehran and the mausoleum of Iranian revolutionary leader Ayatollah Ruhollah Khomeini south of the capital, killing at least 18 people.