To support oil prices OPEC will need to extend term cuts

A survey of market analysts held on Friday, March 17, showed that to sustain the recovery in prices in the oil barrel, the Organization of Petroleum Exporting Countries (OPEC), will need to expand its production cut. This is because the extra extraction that is occurring in countries outside the cartel could harm the reduction of inventories.

Some analysts polled by Reuters said there is a possibility of the Organization extend production cuts until after and June. According to them, to really achieve the objective of stock length of time one is needed so that there is a restriction of the current offer.

As reported by Panorama Offshore, 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 production commodity and that the issue should be decided in May, when the next meeting.

According to OPEC, the market should start to balance or even see the beginning of a reduction in oil inventories in the second half of the year, which may suggest that there is really an extension within the cuts.

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