Report: All oil cuts deal states agree on 9 mos extension – Saudis

MOSCOW, May 22 (PRIME) -- All participants of an oil output reduction agreement agree on extending the cuts by nine months to help trim a supply glut, Bloomberg reported on May 20 citing Saudi Arabia’s Energy Minister Khalid Al-Falih.

“We think we have everybody on board,” Al-Falih said in an interview with Bloomberg television. “Everybody I’ve talked to indicated that nine months was a wise decision.”

An extension through the first quarter of 2018 will help producers reach their goal of trimming global stockpiles to a five-year average, Al-Falih said, Bloomberg reported.

In November 2016, OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels. Russia joined the agreement in December with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June 2017 with potential prolongation.

Russia and Saudi Arabia plan to propose extending the oil production cut deal until April 1, 2018 at meetings in Vienna on May 24–25. The countries plan to hold consultations with other participants of the agreement by May 24.

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