Saudi ‘Mission Impossible’ Makes Longer OPEC Oil Cuts Inevitable
- Prolonging curbs into second-half 2017 looks more likely
- Saudis say deal to be extended if stocks above 5-year average
Saudi Energy Minister Says Oil Fundamentals Have Improved
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Saudi Arabia has set a near-impossible target to end the current round of OPEC oil-production cuts, indicating that a policy rollover into the second half of the year is a near certainty.
OPEC, which pumps about 40 percent of the world’s oil, and several non-OPEC countries including Russia agreed in December to reduce production for six months in an effort to bring supply and demand into balance. At the time, the producers said they could extend the deal for an extra six months.