Saudi Arabia backs extension of OPEC production cuts

Crown Prince affirms support for agreement as OPEC readies to meet next month
Saudi Arabia is ready to back a deal to extend cuts in oil production to help curb a glut in global supply, the Crown Prince Mohammed bin Salman said on Saturday.
By Shoshana Kedem
Sun 29 Oct 2017 09:18 AM

Saudi Arabia is ready to back a deal to extend cuts in oil production to help curb a glut in global supply, the Crown Prince Mohammed bin Salman said on Saturday.

An OPEC deal led by the Organization of Petroleum Exporting Countries (OPEC) has succeeded in rebalancing the global crude oil supply and demand, said the Crown Prince.

“The Kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand,” the Crown Prince said in a statement.

“The high demand for oil has absorbed the increase in shale oil production. The journey towards restoring balance to markets, led by the Kingdom, is proving successful despite the challenges,” he added.

A growing demand for oil will restore future trust in petroleum markets, he said during a high-level investment summit, the Future Investment Initiative (FII) held in Riyadh from October 24-26.

As the largest oil producer in the OPEC bloc, Saudi Arabia will be a leader of future global energy production of both renewable and conventional sources, he said.

An OPEC meeting of global oil producing countries in Vienna on November 7 could see an extension of a deal to cut oil production extended from its March 2018 deadline.

The deal mandates that OPEC countries along with nine other countries and Russia, would cut oil output by about 1.8 million barrels per day (bpd) from January 2017 to drain global oil reserves and help stabilize the supply and demand of oil.

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Last Updated: Sun 29 Oct 2017 10:55 AM GST

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