The level of compliance among OPEC and non-OPEC oil producers with a global deal to cut output is very good, above 100 percent, but it is premature to talk about extending the deal, Saudi Energy Minister Khalid al-Falih said on Monday.
Speaking to Al-Arabiya television on the sidelines of a renewable energy investment conference, Falih said he saw a consensus within OPEC on stabilizing the oil market, and that producers would do whatever was necessary to achieve that goal, whether it took six months or more.
But he insisted it was too early to discuss whether extending the six-month production deal beyond June would be necessary. Producers will look at the expected condition of the market over the next two years, and will be cautious when making their decision on any extension, Falih said.
The 13-member Organization of the Petroleum Exporting Countries committed last year to cut about 1.2 million barrels of oil a day in a bid to bring a vast global oversupply of crude back in line with demand and raise petroleum prices. Russia and 10 other non-OPEC producers also pledged to trim another 558,000 barrels a day. The agreement helped raise oil prices since it was announced on Nov. 30.
Meanwhile, US producers have stepped updriling activity with shale oil production at a two-year high in May, seizing the opportunity of oil prices above $50 a barrel.