OPEC could extend its oil output cuts to the end of 2017, provided other producers continue to play ball.
Less than two weeks into an agreement between OPEC and non-OPEC producers to cut output by 1.8 million barrels per day, Saudi Arabia and Kuwait say they are open to prolonging the six-month deal.
“If we continue to see the current level of prices and the commitment of the community, as well as non-OPEC at a satisfactory level, I think we could renew it for another six months,” Kuwait’s oil minister, Issam Almarzooq, told CNNMoney.
Saudi Arabia’s oil minister Khalid al-Falih said all parties have shown willingness to extend if necessary.
Last month, some countries outside OPEC — including Russia, Mexico and Kazakhstan — agreed to join OPEC members in their effort to restrain supply.
But skepticism remains. Since 1989, OPEC has hammered out numerous production cuts just like the one it negotiated last year. And in that period, OPEC producers have pumped more oil than their quotas in all but a handful of months.
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