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Prolongation of OPEC+ Deal Will Help Balance Global Oil Market - Saudi Energy Minister

MOSCOW (Sputnik) - The prolongation of the OPEC+ oil output cut agreement beyond June will help reduce commercial oil reserves and thus balance global market, Saudi Energy Minister Khalid Falih said on Saturday.
Sputnik

Earlier on Saturday, Putin said after meeting the Saudi crown prince that the two countries had agreed on a common position on the future OPEC+ deal and would support its extension with the already agreed limits on oil production for a period of six or nine months.

"During the bilateral meeting on the sidelines of the G20 summit, Russian President Vladimir Putin agreed with His Highness [Saudi] Crown Prince Mohammed Bin Salman to extend the current agreement of OPEC+ countries on reducing the production from the beginning of July, which will pave the way for the reduction of world reserves, thus helping to balance markets, restore investment to ensure future energy supplies," Falih said on Twitter.

​In December 2018, OPEC and several non-cartel producers clinched an oil output cut deal, agreeing to reduce overall production by 1.2 million barrels per day starting from 2019. OPEC pledged to reduce production by 800,000 barrels per day, while non-OPEC countries agreed to reduce it by 400,000 barrels per day. The further fate of the OPEC+ agreement, including the possibility of its extension into the second half of 2019, will be determined at meetings on Monday and Tuesday in Vienna.

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