OPEC and other
countries that agreed to cut crude production are converging on the need
to extend the pact beyond June to help to clear a supply glut, Saudi
Arabia's OPEC governor said on Friday.
The
Organization of the Petroleum Exporting Countries, Russia and other
producers agreed last year to curb production by 1.8 million barrels per
day (bpd) for six months from Jan. 1.
Oil prices have risen but stockpiles are still high and production from countries that have not agreed to the cut, including the United States, has been rising, keeping crude below the $60 level that OPEC kingpin Saudi Arabia and others would like to see.
A formal decision will be made when OPEC ministers and non-OPEC producers meet in Vienna on May 25.
The Saudi OPEC governor was speaking by telephone from Vienna where he is attending a meeting of OPEC's governing board along with his counterparts from the 13-country OPEC - which accounts for a third of global oil production.
Such meetings are for informal consultations, but they deal with administrative matters and do not decide policy.
Al-Aama said he had accompanied Saudi Energy Minister Khalid Al-Falih on a visit last week to some of the non-OPEC producers that are party to the pact, and "all have expressed their commitment to the deal." Al-Falih was due to visit more countries next week, he said.
Compliance with the cuts has been rising every month, reaching "an impressive 98 percent in March", Al-Aama said. This is higher than OPEC achieved during its last cut in 2009.
Oil prices have risen but stockpiles are still high and production from countries that have not agreed to the cut, including the United States, has been rising, keeping crude below the $60 level that OPEC kingpin Saudi Arabia and others would like to see.
A formal decision will be made when OPEC ministers and non-OPEC producers meet in Vienna on May 25.
The Saudi OPEC governor was speaking by telephone from Vienna where he is attending a meeting of OPEC's governing board along with his counterparts from the 13-country OPEC - which accounts for a third of global oil production.
Such meetings are for informal consultations, but they deal with administrative matters and do not decide policy.
Al-Aama said he had accompanied Saudi Energy Minister Khalid Al-Falih on a visit last week to some of the non-OPEC producers that are party to the pact, and "all have expressed their commitment to the deal." Al-Falih was due to visit more countries next week, he said.
Compliance with the cuts has been rising every month, reaching "an impressive 98 percent in March", Al-Aama said. This is higher than OPEC achieved during its last cut in 2009.
No comments:
Post a Comment