RIYADH SEEKS TO EXTEND OIL OUTPUT CUT DEAL
MUSCAT: Saudi Arabia’s Energy Minister Khaled al-Faleh yesterday called for extending cooperation between Organisation of the Petroleum Exporting Countries (Opec) and non-Opec oil producers to shore up prices beyond this year.
“We should not limit our efforts to this year. We need to be talking about a longer framework for our cooperation,” said Khaled before a meeting between Opec and non-Opec countries, here.
This is the first time Opec kingpin Saudi Arabia explicitly calls for extending a 2016 deal between oil producers to cut back production to combat a global oil glut.
Opec and non-Opec countries signed a landmark agreement in November 2016 to cut output by 1.8 million barrels a day to fight oversupply and lift crude prices.
That deal was initially for six months, but the 14-member cartel and 10 independent producers have since extended it until the end of this year.
“I am talking about extending the framework that we started — which is the declaration of cooperation — beyond this year,” said Khaled.
But he said the new framework for cooperation might differ from the current agreement and its production quotas.
“It does not necessarily mean sticking barrel by barrel to the same agreement, which has helped a healthy rebound in oil prices to around US$70 (RM280) a barrel.” AFP