You are here: Home » Reuters » News
Business Standard

Kuwait, Saudi signal likely extension of oil cuts

Reuters  |  ABU DHABI 

(Reuters) - Leading producers and Kuwait gave the clearest signal yet that plans to extend into the second half of the year a deal with non-producers to curb supplies.

"I expect we will have an extension of the agreement," Kuwait's minister Essam al-Marzouq said at a industry forum with five other energy ministers.

"We have a noticeable increase in compliance from non-which shows the importance of extending the agreement," Marzouq said.

is keen that non- play its part in reducing world inventories to support a price rise that has stalled near $55 a barrel. Crude is up from lows last year below $30.

meets on May 25 to discuss extending supply curbs with non-countries that total 1.8 million barrels daily, two-thirds of that from

Saudi Minister Khalid al-Falih, speaking at the same event, said there was "an initial agreement" that the cuts may need extending to drain high global inventories. He said talks were ongoing.

"Our target is the level of inventories. This is the main indicator for the success of the initiative," Falih said.

While inventories held at sea and in producer countries have dropped, they remain stubbornly high in consumer regions, particularly in Asia and the United States.

The International Energy Agency said last week that inventories in OECD countries were still 10 percent above the 5-year average, a key gauge for

(reporting by Rania el-Gamal, editing Richard Mably)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

Kuwait, Saudi signal likely extension of oil cuts

ABU DHABI (Reuters) - Leading Gulf oil producers Saudi Arabia and Kuwait gave the clearest signal yet that OPEC plans to extend into the second half of the year a deal with non-OPEC producers to curb oil supplies.

(Reuters) - Leading producers and Kuwait gave the clearest signal yet that plans to extend into the second half of the year a deal with non-producers to curb supplies.

"I expect we will have an extension of the agreement," Kuwait's minister Essam al-Marzouq said at a industry forum with five other energy ministers.

"We have a noticeable increase in compliance from non-which shows the importance of extending the agreement," Marzouq said.

is keen that non- play its part in reducing world inventories to support a price rise that has stalled near $55 a barrel. Crude is up from lows last year below $30.

meets on May 25 to discuss extending supply curbs with non-countries that total 1.8 million barrels daily, two-thirds of that from

Saudi Minister Khalid al-Falih, speaking at the same event, said there was "an initial agreement" that the cuts may need extending to drain high global inventories. He said talks were ongoing.

"Our target is the level of inventories. This is the main indicator for the success of the initiative," Falih said.

While inventories held at sea and in producer countries have dropped, they remain stubbornly high in consumer regions, particularly in Asia and the United States.

The International Energy Agency said last week that inventories in OECD countries were still 10 percent above the 5-year average, a key gauge for

(reporting by Rania el-Gamal, editing Richard Mably)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Kuwait, Saudi signal likely extension of oil cuts

(Reuters) - Leading producers and Kuwait gave the clearest signal yet that plans to extend into the second half of the year a deal with non-producers to curb supplies.

"I expect we will have an extension of the agreement," Kuwait's minister Essam al-Marzouq said at a industry forum with five other energy ministers.

"We have a noticeable increase in compliance from non-which shows the importance of extending the agreement," Marzouq said.

is keen that non- play its part in reducing world inventories to support a price rise that has stalled near $55 a barrel. Crude is up from lows last year below $30.

meets on May 25 to discuss extending supply curbs with non-countries that total 1.8 million barrels daily, two-thirds of that from

Saudi Minister Khalid al-Falih, speaking at the same event, said there was "an initial agreement" that the cuts may need extending to drain high global inventories. He said talks were ongoing.

"Our target is the level of inventories. This is the main indicator for the success of the initiative," Falih said.

While inventories held at sea and in producer countries have dropped, they remain stubbornly high in consumer regions, particularly in Asia and the United States.

The International Energy Agency said last week that inventories in OECD countries were still 10 percent above the 5-year average, a key gauge for

(reporting by Rania el-Gamal, editing Richard Mably)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22