Opec and Russia poised to roll over oil output cuts

9 May 2017   OPEC, Russia

Opec and Russia are on course to extend their oil output cuts in an attempt to draw down supplies and bolster the price, with Saudi Arabia saying the cartel is prepared to do “whatever it takes” to end the supply glut. Khalid al-Falih, Saudi Arabia’s energy minister, said on Monday he expected the Opec-led production deal to be rolled over until at least the end of this year. His comments follow a bruising sell-off last week that led to prices falling to their lowest levels in six months. “Based on consultations that I’ve had with participating members, I am confident the agreement will be extended into the second half of the year and possibly beyond,” said Mr Falih during an industry event in Kuala Lumpur. “The producer coalition is determined to do whatever it takes to achieve our target of bringing stock levels back to the five-year average.” Russia, which has led a group of non-Opec member producers in assisting with the cuts, also appears to be backing an extension, which is expected to be agreed at the next Opec ministerial meeting on May 25.

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