OPEC and its Allies are Set to Extend Oil Supply Cuts at Least Until the End of 2019

Saudi Energy Minister Khalid al-Falih has said OPEC and its allies are set to extend oil supply cuts at least until the end of 2019 and no deeper reductions were needed. 

“I think most likely a nine-month extension,” Falih told reporters on Sunday when asked about Saudi preferences.

Asked about a deeper cut, he said: “I don’t think the market needs that.”

“Demand is softening a little bit but I think it’s still healthy,” he said, adding that he expected the market to balance in the next six to nine months.

Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend existing output cuts.

OPEC and its allies led by Russia have been reducing oil output since 2017 to prevent prices from sliding.

Iraqi Oil Minister Thamer Ghadhban said on Sunday he expected the deal to be extended by six to nine months but that his country had an open mind on the matter.

OPEC members meet on Monday in Vienna, followed by talks with non-OPEC oil producers on Tuesday.