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Opec deal to speed up oil market recovery, says Saudi

RIYADH, November 18, 2016

Saudi Arabia is optimistic that the Opec’s (Organization of the Petroleum Exporting Countries) deal to curb oil output to 32.5 million barrels per day (bpd) will speed up the (market) recovery and benefit producers and consumers, said a report.

Limiting it to the lower end of a previously agreed production target will help spur a rally in the price of crude, reported Reuters, citing the Energy Minister Khalid Al Falih.

The Opec, at a meeting in Algeria in September, had made a preliminary deal to limit oil output to between 32.5 million and 33 million bpd, with special conditions given to Libya, Nigeria and Iran, whose output has been hit by wars or sanctions.

More decisions will be taken on this deal when the Opec ministers gather in Vienna on November 30.

Al Falih told Al Arabiya TV that following the Opec announcement, the oil market was on a path toward 'becoming balanced.'

“I’m still optimistic that the consensus reached in Algeria for capping production will translate, into caps on states’ levels and fair and balanced cuts among countries,” he added.

Tags: Saudi | Opec | recovery | oil market |

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