Producers are moving towards further cuts in oil production

Number of Views 339 Date 04/06/2017 - 22:22
Economy News _ Baghdad:

Saudi Energy Minister Khalid Al-Falih did not rule out producers taking further cuts in oil production in the future and said producers of OPEC and other major oil producers would put the market in July.

OPEC and other countries led by Russia agreed last week to extend an agreement to cut world oil production by another nine months until March 2018. A committee set up to monitor cuts in Russia in July is due to meet.

Al-Falih, who is visiting Russia, said the committee would then be able to judge whether the cuts were effective in supporting oil prices, which have halved in the past three years due to the rough supply of crude.

"We have to follow the market, and I think by the end of June and in July we will see that the work we have done has had a big impact. If, for some reason, we need to do more, we will consider doing more, including ... making bigger cuts. "

Russia and Saudi Arabia have recently reached consensus in a long-running rivalry, under which, as the world's top two oil exporters, they have led to a global agreement to reduce production.

Al-Falih expected last week to continue his country's new cooperation with Russia after the end of the current production agreement.

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