Saudi Arabia’s Energy Minister Khalid al-Falih says oil output cut may be extended

April 20, 2017 1:42 pm

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Saudi Arabia says an agreement between world’s biggest oil producers to cut their production to help stabilize the market may have to be extended to ensure maximum results.
“We might have to extend in order to reach the target… of stock levels,” Saudi Arabia’s Energy Minister Khalid al-Falih was quoted as saying by the media.
Falih told an energy forum in Abu Dhabi that there was a sort of “initial agreement ” on the need to extend the deal after talks in Kuwait last month.
He said producers would continue to assess market figures until next month, when ministers are expected to take a final decision at a meeting in Vienna, AFP reported.
OPEC members agreed late last year to cut production by 1.2 million barrels per day (mb/d) for six months beginning from January 2017 in a bid to shore up prices.
Some non-OPEC producers, led by Russia, joined in December by committing to cut output by 558,000 barrels per day (bpd).
The agreement exempted key member Iran from the plan, allowing it to increase its production by 90,000 bpd to reach pre-sanction levels of around 4 million bpd.
Nigeria and Libya were also exempted from the planned output cut due to internal conflicts which have already decreased their crude production.
Iran’s Oil Minister Bijan Zanganeh was quoted as saying earlier this week that Tehran supports the extension of the agreement between OPEC and non-OPEC producers to cut their production targets.  

Iran’s Oil Minister Bijan Zanganeh says Tehran supports the extension of oil output cuts.

Zanganeh described as “historic” the cooperation between producers over their output cut agreement. 
He told reporters that the compliance by producers with the agreement had grown stronger “month by month”. 
“The market has already taken the output cut plan seriously. This shows that the agreement between OPEC and non-OPEC producers has been successful,” the Iranian minister was quoted as saying by ISNA agency.
Oil prices currently hover just over $50 per barrel after shedding around half of their value since mid-2014, AFP added.
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