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Oil Jumps as Saudis, Russia Favor Extending Output Deal to 2018

  • Ministers agree pact should extend through the end of March
  • OPEC deal is working and inventories decreasing: Al-Falih
Bloomberg business news

Russians, Saudis Say Oil Deal Needs to Be Extended

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Oil rallied after Saudi Arabia and Russia stoked expectations that production cuts might be extended for nine months.

Futures closed at their highest in more than two weeks. While output curbs that started Jan. 1 are working, global inventories aren’t yet at the level targeted by OPEC and its allies, Saudi Energy Minister Khalid Al-Falih said Monday in Beijing alongside his Russian counterpart, Alexander Novak. The ministers agreed the deal should be extended through the first quarter of 2018 at the same volume of reductions, they said.