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Mon 8 Apr 2019 02:15 PM

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Saudi Arabia sees no need for further oil output cuts

Saudi energy minister Khalid Al-Falih says oil markets are now 'healthy'

Saudi Arabia sees no need for further oil output cuts
Saudi Arabia's Minister of Energy Industry and Mineral Resources, Khalid Al Falih. (FAYEZ NURELDINE/AFP/Getty Images)

Oil markets are “healthy,” eliminating the need for Saudi Arabia to increase its deeper-than-agreed production cuts, the kingdom’s energy minister has said.

Saudi Arabia is leading OPEC and partners including Russia in cutting production to shore up prices.

Oil is up about 30 percent this year after the strongest quarterly performance in five years.

But the group, known as OPEC+, remains committed to reducing an inventory glut which is still 70 million to 80 million barrels too high, Khalid Al-Falih said.

The kingdom will pump about 9.8 million barrels a day in March and April and export less than 7 million barrels daily in both months, Al-Falih said in March.

Saudi Arabia has a production target of 10.3 million barrels a day.

OPEC+ plans a meeting in May to assess the group’s compliance. This will be a “key” gathering, Al-Falih said, but it’s still “premature” to decide whether they will extend oil cuts into the second half of 2019.

“We are driven by inventories,” he said, and OPEC+ will agree on what to do next during its June meeting.

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