Oil producers ‘might have to’ extend output cuts – Saudi minister

ABU DHABI, United Arab Emirates – Saudi Arabia’s energy minister said on Thursday, April 20, that oil-producing countries might have to extend output cuts agreed for the first 6 months of the year in order to achieve the desired rebalancing of the market.

“We might have to extend in order to reach the target… of stock levels,” Khalid al-Falih told an energy forum in Abu Dhabi, referring to a deal between OPEC and non-OPEC producers to cut production by around 1.8 million barrels per day.

Falih, whose country is the world’s largest exporter, said 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.

OPEC members agreed in November to cut production by 1.2 million barrels per day for 6 months beginning from the start of the year in a bid to shore up prices. 

Some non-cartel producers, led by Russia, joined in December by committing to cut output by 558 million bpd.

Oil prices currently hover just over $50 per barrel after shedding around half of their value since mid-2014. – Rappler.com