Saudi Arabia and Russia have said they are in favor of extending cuts to the extraction of oil by world producers until the end of the first quarter of 2018 in order to reduce the oversupply in the market. Crude prices rebounded.
To achieve the objective of reducing inventories to the average of the last five years, it is necessary to extend the cuts to the previously agreed volumes, the ministers said Energy of the world’s largest oil producers at a joint press conference in Beijing. The two countries will present their position at the meeting between OPEC and other nations that are part of the agreement later this month in Vienna.
READ ALSO…
► Oil production in the US would grow to a record in 2018
►Is more gas being found in Peru?
Russia and Saudi Arabia, the largest of the 24 countries that agreed to cut production for six months from January, are reaffirming their commitment to the agreement in amid growing doubts about its effectiveness. The increase in production in the United States has raised fears that the Organization of the Petroleum Exporting Countries and its partners are failing to reduce the excess supply. Oil has lost most of its gains since its agreement at the end of last year.
“The deal needs to be extended as we will not reach the desired inventory level by the end of June,” Khalid Al-Falih said during the event with Alexander Novak from Russia. “Therefore, we conclude that it will probably be better to conclude the agreement by the end of the first quarter of 2018.”
Oil futures soared as the ministers spoke. US West Texas Intermediate rose 1.8 percent to $48.70 a barrel on the New York Mercantile Exchange, the biggest gain since May 2. Brent crude rose 1.7 percent to $51.69 on the ICE Futures Europe exchange. Both are still 50 percent below 2014 peaks.
READ ALSO.. . ► OPEC evaluates extending oil cuts for nine months or more
► OPEC: Producers contemplate expanding oil cuts
As OPEC and its allies reduce supply, production in the United States, which is not part of the agreement, has risen to the highest level since August 2015 as drillers extract more shale from fields. However, US shale inventories are showing signs of contraction, and have fallen in the last five weeks from record levels at the end of March.
OPEC members agreed to cut 1.2 million barrels per day in crude oil production in November, and several non-member countries, including Russia, agreed in December to contribute a reduction of 600,000 barrels per day.
“Preliminary consultations show that everyone is committed” to the production deal and no country wants to leave, Novak said. “I see no reason for any country to quit.” The Energy Ministry has held preliminary talks with Russian companies on the matter, it said.
Note: This article has been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
MODARI Tire Inflator Portable Air Compressor - 4X Faster 160 PSI Air Pump for Car Tires - Wireless Car Tire Inflator with Pressure Gauge - Portable Tire Inflator for Car, Pickup, Motor and More
$59.99 (as of February 22, 2025 19:36 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Karaoke Machine for Kids Adults, Portable Bluetooth Mini Karaoke Microphone Singing Speaker with 2 Wireless Mic and Light,Toys for All Smartphones,Birthday, Family,Home Party (Rose Gold)
$21.79 (as of February 22, 2025 20:14 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Paw Science Dog Ear Cleaner Wipes – Finger Wipes for Dogs – Cleaning, Soothing, and Deodorizing Itchy Ears – Pet Ear Relief Solution
$13.99 (as of February 22, 2025 19:36 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Schylling NeeDoh Nice Cube -Sensory Squeeze Toy with Super Solid Squish - 2.25" Cube
$14.94 (as of February 22, 2025 19:36 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
