Dubai/London: OPEC and its allies plan to deepen oil cuts and have the deal in place so it runs at least until June 2020 as Saudi Arabia wants to deliver a positive surprise to the market before the listing of Saudi Aramco, two sources familiar with the talks said.
The deal being discussed by the Organization of the Petroleum Exporting Countries and other producers, known as OPEC+, would be to add at least 400,000 barrels per day (bpd) to existing cuts of 1.2 million bpd. The current deal runs to March.
Prince Abdulaziz bin Salman heads to Vienna this week for his first OPEC meeting as Saudi Arabia's energy minister.
The veteran oil official wants to ensure oil prices stay high enough during Aramco's initial share offering (IPO), sources said.
The IPO will be priced on December 5, the same day OPEC meets in Vienna. The OPEC+ grouping holds talks on December 6.