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Saudi Arabia and Russia agree oil output cuts until March 2018

Staff Writer | May 15, 2017
Saudi Arabia and Russia, the world's two top oil producers, agreed on Monday to extend oil output cuts for a further nine months until March 2018 in a bid to erode a global crude glut, Reuters reported.
Russia oil field
Oil exploration   Until March 2018
In a joint statement that followed an earlier meeting, Saudi energy minister Khalid al-Falih and his Russian counterpart Alexander Novak said they had agreed to prolong an existing deal, pledging "to do whatever it takes" to reduce global inventories to their five-year average, Reuters said.

"There has been a marked reduction to the inventories, but we're not where we want to be in reaching the five-year average," said Falih at a briefing in Beijing alongside Novak, according to Reuters.

"We've come to conclusion that the agreement needs to be extended," Falih said.

The ministers expressed optimism they will secure support from producers beyond those in the current deal, the statement said.

The Organisation of Petroleum Exporting Countries is scheduled to meet on May 25 in Vienna, Austria.