Saudi Energy Minister, Khalid al-Falih, on Monday, July 24, said that the Organisation of Petroleum Exporting Countries, OPEC and non-OPEC oil producing nations would back an extension of a global oil pact to curb output beyond March 2018 if needed.
Falih also said the oil producers would work on a smooth exit from the deal that does not shock the market, once it comes to an end.
Meanwhile, Brent crude oil prices appreciated about 1 percent at about $48.50, helped by news of a cap on Nigeria and by comments from Saudi Energy Minister Khalid al-Falih that the kingdom’s exports would fall to 6.6 million bpd in August as demand at home was rising, effectively representing a cut of 1 million bpd year-on-year, Reuters reports.
He said global stocks had fallen by 90 million barrels, but were still about 250 million barrels above the five-year average for industrialized nations, which is the level OPEC and non-OPEC states are targeting with their output curbs.
Russia and Saudi Arabia face mounting pressure to prop up oil prices. Russia, which is heavily reliant on oil revenues, holds a presidential election next year. Saudi Arabia needs higher prices to balance its budget and support next year’s planned listing of state oil firm Saudi Aramco.
