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Riyadh says oil output cut may be extended

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Staff Writer | April 28, 2017
Saudi Arabia says an agreement between world’s biggest oil producers to cut their production to help stabilize the market may have to be extended to ensure maximum results.
Khalid al-Falih
Oil exploration   558,000 barrels per day
"We might have to extend in order to reach the target... of stock levels," Saudi Arabia’s Energy Minister Khalid al-Falih was quoted as saying by the media.

Falih told an energy forum in Abu Dhabi that there was a sort of "initial agreement " on the need to extend the deal after talks in Kuwait last month.

He said producers would continue to assess market figures until next month, when ministers are expected to take a final decision at a meeting in Vienna, AFP reported.

OPEC members agreed late last year to cut production by 1.2 million barrels per day (mb/d) for six months beginning from January 2017 in a bid to shore up prices.

Some non-OPEC producers, led by Russia, joined in December by committing to cut output by 558,000 barrels per day (bpd).

The agreement exempted key member Iran from the plan, allowing it to increase its production by 90,000 bpd to reach pre-sanction levels of around 4 million bpd.

Nigeria and Libya were also exempted from the planned output cut due to internal conflicts which have already decreased their crude production.