OPEC MAY EX­TEND OUT­PUT CURBS TO BE­YOND 2017

Pro­duc­ers de­ter­mined to hit goal of cut­ting bloated stock­piles, says Saudi oil min­is­ter

New Straits Times - - Business -

KUALA LUMPUR

SAUDI Ara­bia’s oil min­is­ter said he’s con­fi­dent that an agree­ment by pro­duc­ers to curb crude out­put and shrink a mar­ket glut would be ex­tended into the sec­ond half of the year and pos­si­bly be­yond.

While United States shale out­put growth and the shut­down of re­finer­ies for main­te­nance had slowed the im­pact of cuts by Or­gan­i­sa­tion of the Pe­tro­leum Ex­port­ing Coun­tries (Opec) and its part­ners, pro­duc­ers were de­ter­mined to reach their goal of re­duc­ing bloated stock­piles, said Khalid Al-Falih at the Asia Oil and Gas Con­fer­ence, here, yes­ter­day.

He said he was con­fi­dent the global oil mar­ket would soon re­bal­ance and re­turn to a “healthy state”.

Surg­ing US pro­duc­tion has raised con­cern that Opec and part­ners are fail­ing to re­duce an over­sup­ply and prop up prices. Oil has sur­ren­dered all its gains since their deal late last year to cut out­put and with Opec meet­ing in Vienna later this month, sev­eral na­tions have said they’d sup­port an ex­ten­sion of the six­month agree­ment that be­gan in Jan­uary.

This is the first time the Saudi min­is­ter has sug­gested it could be ex­tended be­yond this year.

“Based on the con­sul­ta­tions I have had with par­tic­i­pat­ing mem­bers I am con­fi­dent the agree­ment would be ex­tended into the sec­ond half of the year and pos­si­bly be­yond,” said Al-Falih.

“The coali­tion was de­ter­mined to do what­ever it takes to achieve the tar­get of bring­ing stock lev­els back to the five-year av­er­age.”

West Texas In­ter­me­di­ate crude rose one per cent to US$46.66 (RM205.3) a bar­rel by 2.14pm Sin­ga­pore time on the New York Mer­can­tile Ex­change.

Brent, the bench­mark for more than half the world’s oil, was up one per cent at US$49.60 on the Lon­don-based ICE Fu­tures Europe ex­change.

Both are still more than 50 per cent be­low their peaks in 2014, when the US shale boom ex­ac­er­bated a mar­ket glut and trig­gered the big­gest price crash in a gen­er­a­tion. Bloomberg

BLOOMBERG PIC

Surg­ing United States shale out­put has raised con­cerns that Or­gan­i­sa­tion of the Pe­tro­leum Ex­port­ing Coun­tries and part­ners are fail­ing to re­duce an oil over­sup­ply.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.