Saudis: OPEC close to extending output cut deal
“On the OPEC side, a rollover is almost in the bag. The question is to calibrate with non-OPEC,” Reuters quoted al-Falih as saying at the St. Petersburg International Economic Forum in Russia.
“I’m hoping it will be an easy decision and that we’ll roll over, but if it’s not, we will be flexible in terms of our position in the kingdom,” al-Falih said.Also on rt.com Oil prices drop as demand concerns rise over US-China trade war risks
OPEC and its Russia-led non-OPEC allies are withholding a total of 1.2 million bpd of oil supply from the market until the end of June and are set to meet in coming weeks to discuss how to proceed with their oil supply management policies in place since the start of 2017.
The oil price slide of the past two weeks leaves OPEC and its partners little choice but to roll over the cuts, analysts say.
After a meeting with Russia’s Energy Minister Alexander Novak, Saudi Arabia’s al-Falih said that he was sure that the larger OPEC+ group would roll over the production cuts through the end of this year.
There won’t be a need to deepen the cuts, while the situation with oil supply in Iran, Venezuela, and other countries will show if OPEC and allies need to scale back the cuts “a little bit,” al-Falih said, as carried by Bloomberg.Also on rt.com Top 19 historical oil disruptions, and how No.20 will shock markets
Earlier this week, al-Falih sought to assure the oil market that the Saudis and the larger OPEC+ group would do whatever it takes to bring supply and demand to balance.
Saudi Arabia and Russia, the respective leaders of the OPEC and non-OPEC groups part of the production cut deal, have been allies in oil market management for more than two years now, although the Saudis need oil prices at $85 to balance their budget, while Russia claims that it’s fine with the current price of oil at $60-65.