‘All on board to ex­tend out­put cuts by 9 months’

New Straits Times - - Business -

LON­DON/DUBAI: All pro­duc­ers agree to ex­tend crude out­put cuts by nine months to help trim a sup­ply glut, ac­cord­ing to Saudi Ara­bia’s en­ergy min­is­ter.

The ex­ten­sion through the first quar­ter of next year would help pro­duc­ers reach their goal of trim­ming global stock­piles to a five-year av­er­age, said Khalid AlFalih.

The Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries (Opec) and other global pro­duc­ers such as Rus­sia had agreed to re­duce pro­duc­tion in the first six month of this year, and the de­ci­sion to ex­tend the cuts would be taken when they meet in Vi­enna at the end of the month, said AlFalih.

“We think we have ev­ery­body on board,” he said in Riyadh on Satur­day. “Ev­ery­body I’ve talked to in­di­cated that nine months was a wise de­ci­sion.”

Al-Falih was speak­ing as United States Pres­i­dent Don­ald Trump started a visit in Saudi Ara­bia, the world’s big­gest crude ex­porter, on his first over­seas trip.

Rep­re­sen­ta­tives from Opec and of­fi­cials from sev­eral non­mem­bers dis­cussed in Vi­enna on Fri­day the out­look for ris­ing US shale oil pro­duc­tion, which has

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