Nine-month extension for Opec+ 'most likely', says Saudi energy minister

The agreement between Russian and Saudi leadership to cut output comes amid softening demand for crude

Saudi energy minister Khalid Al Falih said 'I think most likely a nine-month extension', when asked about Saudi preferences. Bloomberg
Saudi energy minister Khalid Al Falih said 'I think most likely a nine-month extension', when asked about Saudi preferences. Bloomberg

Saudi Arabia's Energy Minister Khalid Al Falih said on Sunday that Opec and its allies led by Russia would most likely extend their oil output-cut deal by nine months and that no deeper reductions were needed.

“I think most likely a nine-month extension,” Mr Al Falih said.

Asked about a deeper cut, he said: "I don’t think the market needs that."

“Demand is softening a little bit but I think it’s still healthy,” he said, adding that he expected the market to balance in the next six to nine months.

Russia has agreed with Saudi Arabia to extend the deal with Opec, Russian President Vladimir Putin said on Saturday as oil prices come under renewed pressure from rising US supplies and a slowing global economy.

Mr Al Falih said later on Saturday that the agreement between the Russian and Saudi leaders on the sidelines of the G20 to extend the Opec+ oil supply cut agreement from July would help reduce global inventories and balance the oil markets.

The energy minister wrote on his official Twitter account the partnership between Riyadh and Moscow paves the way to guarantee the interests of both oil producers and consumers, as well as the continued growth of the global economy.

Oil ministers from Opec meet on Monday in Vienna, followed by talks with non-Opec oil producers on Tuesday.

Updated: June 30, 2019 01:03 PM

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