Prices recently crashed as the coronavirus pandemic saps global demand, with the situation compounded by a supply glut resulting from a price war between Opec cartel kingpin Saudi Arabia and non-Opec rival Russia.
Celebrations for oil production cuts may have come too soon and will mainly benefit a few rich countries and shareholders.
Kirill Dmitriev, one of Russia's top oil negotiators who also heads the sovereign wealth fund, says a deal is imminent, a month after oil prices tumbled due to the coronavirus pandemic and a price war between Russia and Saudi Arabia.
Prices may decline more gradually after Saudi Arabia sent a signal that a production cut deal may be ahead, and the US has said it will put pressure on Saudi Arabia and its allies for such a deal.
The continent's economy could shrink up to 1.1 percent this year, trade could fall 35 percent from 2019 levels, and oil producers, tourist destinations will be hit hard, a study by African Union says.
Delegates of OPEC and other oil producers including Russia – together known as OPEC+ – have been in a "joint technical committee" meeting in Vienna this week to discuss cutting production, amid fears of the coronavirus situation.
The current deal to support prices reduced production by 1.2 million barrels per day starting from January 1 for six months, and will now run into next year with the extension.
Secretary of State Mike Pompeo says the United States is not extending any waivers exempting importers of Iranian oil from US sanctions and there will be no grace period for those economies to comply.
After hitting a peak just a month ago, oil prices have plunged, leaving many to wonder about the exact reasons behind the wild fluctuations.
Foreign ministers from China, France, Germany, Britain and Russia to meet Iranian officials on Friday in Vienna to discuss how to keep a 2015 nuclear deal alive after US President Trump ditched the pact in May.
The oil-dependent kingdom announced its biggest budget ever as it tries to boost growth financed by higher oil revenue and more tax.
US President and Russian Foreign Minister have called for an end to the Qatar crisis as Russia, Qatar vow to boost trade ties.
Subscribe to our Youtube channel for all latest in-depth, on the ground reporting from around the world.
Copyright © 2020 TRT World.