OPEC+ is set to extend cuts after a breakthrough with Iraq – Bloomberg

Amid uncertainty surrounding the next meeting of the OPEC and non-OPEC producers, mostly known as OPEC+, Bloomberg came out with the news suggesting the extension of the current production cuts. The news also expects the discussion to take place during the weekend.

Key quotes

After almost a week of wrangling, OPEC+ leaders Russia and Saudi Arabia clinched a tentative deal with holdout member Iraq, according to a delegate. The pair were pushing Iraq to stop shirking its share of cuts and to comply with what the cartel agrees.

The agreement -- though still to be ratified -- means OPEC+ will extend its record production curbs for another month. 

Market implications

WTI benefits from the news as it ticked up to $37.58 from $37.48 after the release. Though, nearness to the US market’s close seems to have restricted the oil benchmark’s reaction to the price-positive update.