Saudi: OPEC, allies will cooperate beyond 2018

MUSCAT / Reuters

Global oil producers are in agreement that they should continue cooperating on production after their deal on supply cuts expires at the end of this year, Saudi Arabia’s energy minister Khalid Al-Falih said on Sunday.
It was the first time Saudi Arabia, the world’s top oil exporter, had publicly stated OPEC and non-OPEC producers would keep cooperating after 2018.
The exact mechanism for cooperation next year has not yet been decided, Falih said, but if oil inventories increase in 2018 as some in the market expect, producers might have to cons-ider rolling the supply cut deal into next year.
“There is a readiness to continue cooperation beyond 2018… The mechanism hasn’t been determined yet, but there is a consensus to continue,” Falih said after a meeting of the joint ministerial committee which oversees implementation of the cuts.
The committee comprises Saudi Arabia, Kuwait, Venezuela and Algeria, plus non-OPEC producers Russia and Oman. The United Arab Emirates was also present on Sunday as it holds the presidency of OPEC.
Before the meeting, Falih said extending the cooperation framework beyond 2018 wouldn’t necessarily mean sticking to coun- tries’ current production targets.
The agreement was launched last January and Saudi Arabia has accounted for by far the largest share of the output cuts.
Falih said a deal on production levels after 2018 would be about “assuring stakeholders, investors, consumers and the global community that this is something that is here to stay. And we are going to work together.”
Kuwait’s oil minister Bakheet al-Rashidi said Sunday’s meeting focussed on compliance with the current agreement on output cuts, and discussion of the deal’s future was expected to occur in June, when OPEC and other producers led by Russia are next scheduled to meet on oil policy.