‘Producers committed to cut oil inventories to 5-yr average’

MOSCOW / Reuters

OPEC and non-OPEC countries are committed to bringing global oil inventories down to the industry’s five-year average, Saudi Energy Minister Khalid al-Falih said on Wednesday, adding he saw the target being reached in the very near future.
Speaking in Moscow after a meeting between OPEC and Russia, Falih and his Russian counterpart Alexander Novak also said they saw their cooperation in oil markets lasting after the current joint oil output agreement expires in March next year. “Our joint declaration with Russia concluded that while the rebalancing goal is on its way to being achieved, more needed to be done to draw inventories towards the five-year average,” Falih said.
Falih reiterated his country’s position to do “whatever it takes” along with Russia to help stabilise the oil market, signalling an open-ended policy to reduce the inventory overhang and balance the market.
“It is necessary to work out new framework principles for continued steady cooperation between OPEC and non-OPEC even after the expiration of the Vienna agreements,” Novak said on Wednesday.
Last December, Russia and 10 other non-OPEC nations agreed to join OPEC’s output cuts for the first time in 15 years.