Major Oil Producers Reach Initial Deal to Extend Output Cuts
- Saudi minister says producers haven’t met goal for inventories
- Gulf Arabs agreed; Iran, Venezuela show support: Oman minister
Oil Analyst Says OPEC Must Maintain the Cut
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A number of major crude-producing countries reached an initial agreement to extend output cuts, Saudi Arabia’s oil minister said Thursday, as persistently high stockpiles weigh on prices.
OPEC and other major suppliers have failed, after three months of limiting production, to achieve their target of reducing oil inventories below the five-year historical average, Saudi Arabia’s Khalid Al-Falih said at a conference in Abu Dhabi. The producers pledged to reduce output for six months starting in January. Al-Falih didn’t identify or specify the number of countries in the initial deal for an extension.