Putin in OPEC+ spoiler alert
Russian President Vladimir Putin has at least removed some of the suspense leading up to the much anticipated meeting of OPEC and its allies in Vienna this week.
At the G20 meeting in Osaka he said that Russia and Saudi Arabia had agreed to extend OPEC+ production cuts for the rest of this year and potentially to continue throughout early 2019.
The discussions at the G20 summit appear to have made the outcome of the OPEC+ meeting on July 1-2 in Vienna somewhat of a foregone conclusion.
Alongside the efforts to establish balance in global oil markets at G20 was an attempt to restore harmony, of sorts, to global trade.
The agreement between the US and China to restart talks is a positive for both the global economy and the global energy market.
While oil closed the week in positive territory, Brent crude has remained stuck in a tight range below the $70 mark since the end of May, shrugging off rising tensions in the Arabian Gulf.
The 176th OPEC meeting follows successful efforts by oil exporters to stabilize the market over the past 30 months. The historic cooperation between 24 producers (14 inside and 10 outside OPEC) has ensured that the market has been adequately supplied.
Cooperation between Saudi Arabia, Russia and other exporters within OPEC+ group has been a calming control in otherwise turbulent times for the global economy.
That cooperation looks set to continue throughout the rest of the year, ensuring that the meeting in Vienna will start on a positive note.
• Faisal Faeq is an energy and oil marketing adviser. He was formerly with OPEC and Saudi Aramco. Twitter:@faisalfaeq