Saudis ‘flexible’ on Russia’s oil cut idea

moscow — Saudi Arabia made no firm pledge on Thursday to extend a deal between the Opec, Russia and other producers on cutting supplies but said it was “flexible” regarding Moscow’s suggestion to prolong the pact until the end of 2018.

Saudi Energy Minister Khalid Al Falih was speaking in a television interview a day after Russian President Vladimir Putin said the supply reduction deal that is due to expire in March could run to the end of next year.

“In the kingdom, we have to keep all options open, President Putin agreed with us on this and expressed his readiness to extend until the end of 2018 if this is agreed, and if this is the best option,” he told Al Arabiya television.

He said he welcomed the “flexibility” shown by Russia on the issue and said the Saudi government aimed to “be flexible in leading the producing countries in and outside of the Opec to a consensus that takes the market to where we want it to be.”

Saudi Arabia and Russia helped secure a deal between the Organisation of the Petroleum Exporting Countries and 10 rival suppliers to cut output until the end of March 2018 in an effort to reduce a glut. Oil rose above $56 a barrel on Thursday, supported by expectations of an extension to the supply cut pact.

But prices are still half their mid2014 levels. Climbing US shale production has kept a lid on price gains, but Al Falih said inventories were still falling. —