Saudi Arabia will push for an extension of oil production cuts through mid-2020 at a producers’ summit this week in an effort to prop up Saudi Aramco’s initial public offering share price, Persian Gulf officials said.
But talks over boosting compliance to agreed cuts — a key condition for the kingdom to deepen its efforts — are being overshadowed by growing unrest in the Middle East.
The Saudi-led Organization of the Petroleum Exporting Countries is set to meet with a 10-nation coalition led by Russia on Dec. 5 and 6 in Vienna to debate to extend a pact to curb production by 1.2 million barrels a day beyond the agreed end of March 2020.
The debate is likely to be heavily influenced by the IPO of state-run Saudi Arabian Oil Co., as Aramco is formally known, which is set to announce the pricing of its shares on Dec. 5 ahead of its roughly $25 billion listing. Fearing that uncertainty could lead to a sharp drop in oil prices, the kingdom wants an agreement to extend production cuts to at least June 2020, Persian Gulf oil officials said.