Saudi Arabia, Russia Back OPEC's Oil Output Cut in Joint Statement

Published May 15th, 2017 - 10:30 GMT
Saudi Arabia and Russia have agreed to extend the oil output reduction deal for another nine months, until march 2018. (AFP/ Joe Klamar)
Saudi Arabia and Russia have agreed to extend the oil output reduction deal for another nine months, until march 2018. (AFP/ Joe Klamar)

Saudi Arabia and Russia have agreed to extend the Opec and non-Opec oil output reduction deal for another nine months until march 2018, reports said.

Saudi Energy Minister Khalid Al-Falih and Russian Energy Minister Alexander Novak in a joint statement said that the two countries will recommend at the meeting of the agreement participants on May 25 to extend the agreement for another 9 months, said a Tass report.

Oil prices jumped over 1.5 percent on Monday after the Saudi-Russian statement. Brent crude was at $51.65 per barrel at 0500 GMT, up 81 cents. US West Texas Intermediate (WTI) crude was at $48.62 per barrel, up 78 cents.

"I think the decisions will be positive in Vienna. We bring together a complete consensus of the group," the minister said.

"Our nations agreed to extend the deal up to the end of March 2018 with the same volume of allocations, which was included in the agreement from December 10," he said.

Russian oil companies share the position of the Russian Ministry of Energy to extend the agreement, said Novak.

Opec countries and countries outside the cartel participating in the deal on reducing oil production have reached a full consensus on extending the deal, Al-Falih said.

Russia and Saudi Arabia wil hold consultations with the parties to the deal before May 24, according to the joint statement of the two countries.


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