OPEC, non-OPEC extend oil output cut by 9 months to fight glut

Record ID: 876869

  • Title: OPEC, non-OPEC extend oil output cut by 9 months to fight glut
  • Date: 25th May 2017
  • Summary: VIENNA, AUSTRIA (MAY 25, 2017) (REUTERS) WIDE OF NEWS CONFERENCE RUSSIAN ENERGY MINISTER, ALEXANDER NOVAK, AND SAUDI ARABIA ENERGY MINISTER, KHALID AL-FALIH, TAKING SEATS MEDIA (SOUNDBITE) (English) SAUDI ARABIA ENERGY MINISTER, KHALID AL-FALIH, SAYING: "The conformity level for member countries is exceptionally high. In fact we've reached 102 percent overall conformity. So even exceeding our collective commitment. Indications are that May will even be better than April." MEDIA WIDE OF NEWS CONFERENCE (SOUNDBITE) (English) SAUDI ARABIA ENERGY MINISTER, KHALID AL-FALIH, SAYING: "All indications are solid that a nine-month extension is the optimum and should bring us within the five-year average by end of the year, and we wanted to extend it to avoid a stock building in the first quarter of 2018. But we believe that we will be at target before year end." MEDIA (SOUNDBITE) (English) SAUDI ARABIA ENERGY MINISTER, KHALID AL-FALIH, SAYING: "What we are doing is good for producers across the globe, whether countries or companies, it's good for the industry, it will bring stability and investment back into the industry. And we're also equally convinced that it's good for consumers and the global market." WIDE OF NEWS CONFERENCE (SOUNDBITE) (Russian) RUSSIAN ENERGY MINISTER, ALEXANDER NOVAK, SAYING: "Our common goal here is to, first of all, achieve a balanced market. And to restore investment attractiveness of the sector in general in order to be able to fulfill future needs and to give more product ability to the market. We're all reaping the benefits of this, both producers and consumers, and that's why we have to make sure that we continue on this path." MEDIA NOVAK AND AL-FALIH ENDING NEWS CONFERENCE/REPORTERS WALKING AROUND
  • Embargoed: 8th June 2017 23:58
  • Keywords: Saudi Arabia Russia conference news oil OPEC
  • Location: VIENNA, AUSTRIA
  • City: VIENNA, AUSTRIA
  • Country: Austria
  • Topics: Economic Events
  • Reuters ID: LVA0016IC9XZB
  • Aspect Ratio: 16:9
  • Story Text: OPEC and non-members led by Russia decided on Thursday to extend cuts in oil output by nine months to March 2018 as they battle a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.
    Oil prices dropped more than 4 percent as the market had been hoping oil producers could reach a last-minute deal to deepen the cuts or extend them further, until mid-2018.
    OPEC's cuts have helped to push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.
    Oil's earlier price decline, which started in 2014, forced Russia and Saudi Arabia to tighten their belts and led to unrest in some producing countries including Venezuela and Nigeria.
    The price rise this year has spurred growth in the U.S. shale industry, which is not participating in the output deal, thus slowing the market's rebalancing with global crude stocks still near record highs.
  • Copyright Holder: REUTERS
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