Saudi Plans for Early End to OPEC Pact May Leave Job Undone
- Kingdom says OPEC cuts can end at mid-year as market balances
- That would still leave two-thirds of inventory glut in place
OPEC's Barkindo: Hope to See Balance Return in 2017
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Saudi Arabia says OPEC is on track to wrap up its production curbs by the middle of the year. That would leave its aim of clearing a global oil glut unfinished.
OPEC and Russia won’t need to prolong output cuts beyond June because the agreed reductions will have already ended the oversupply in world crude markets, Saudi Minister of Energy and Industry Khalid Al-Falih said in Abu Dhabi on Monday. However, ending the deal by mid-year and restoring production would mean the surplus just starts building again, thwarting OPEC’s ambition of whittling down bloated oil inventories.