OPEC can extend oil production cut agreement

The energy minister of Saudi Arabia, Khalid al-Falih, said in an interview that members of the Organization of Petroleum Exporting Countries (OPEC) have shown themselves willing to extend the cut duration in the production of commodity. The issue should be resolved at the next meeting of the cartel scheduled to take place in May.

According Falih, member countries are striving to achieve reach 1.2 million reduction target barrels per day and supported by producers outside the group, such as Russia, it has been possible to carry out sharply cuts. Although some countries have failed to meet the reduction target, Saudi Arabia cut beyond the promised, the helped the balance of the agreement. The kingdom cut 300,000 bpd more than the combined, according to OPEC.

However, oil stocks have not indented as expected. But according to the Saudi minister levels of reserves are being closely monitored by him along with other authorities and this situation can be changed before the next meeting of the group. The first countries that requested the extension of the cuts period was Kuwait and Iran, which even officially has no reduction target.

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