Saudi Arabia has recommended an extension of oil production cuts by OPEC and its allies at current levels to stabilise prices.
At an economic forum in St Petersburg, Russia on Friday, Saudi Energy Minister Khalid al Falih said the group was close to agreeing an extension of the pact on cutting oil supplies beyond June, although more talks were required with the non-OPEC members part of previous deals, Reuters reported.
The Organization of the Petroleum Exporting Countries plus Russia and other producers, an alliance known as OPEC+, have a six-month deal to cut output by 1.2 million barrels per day (bpd) from Jan. 1. As the agreement comes to an end in June, the group will meet in coming weeks to decide their next move.
“On the OPEC side, a rollover is almost in the bag. The question is to calibrate with non-OPEC,” Reuters quoted Falih who spoke at an economic forum in St Petersburg. “I don’t think there will be a need to deepen the cut.”
“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,” he said.
Falih said the kingdom was pumping 700,000 bpd below its 10.311 million bpd target, implying output of about 9.60 million bpd.