OPEC to stick with oil output cuts through 2018: Saudi energy minister
Saudi Arabia’s energy minister said Wednesday that the oil-rich kingdom and the OPEC cartel were committed to sticking with petroleum-production cuts for the rest of the year, even if they “overbalance the market a little bit.”
The remarks by the top Saudi oil official, Khalid al-Falih, came a day after an International Energy Agency report contended that a new wave of U.S. crude production could undermine the kingdom’s efforts to raise petroleum prices with its output cuts.
“We believe we have to err on the safe side and make sure that the market has balanced,” Falih said at a news conference. “And if we have to overbalance the market a little bit, then so be it.”
The Organization of the Petroleum Exporting Countries and 10 allies, including the world’s largest crude producer, Russia, began a long-term effort to draw down a global oversupply of oil CLH8, +2.70% LCOJ8, +2.76% by cutting their own production. The 1.8 million-barrel-a-day effort has helped drain oil in storage and contributed to prices rising as high as $70 a barrel last month.
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