Saudi crown prince supports extending Opec production cuts to balance supply and demand
Oil prices climb to over US$60 for the first time since 2015
Saudi Arabia’s crown prince Mohammed bin Salman said on Saturday his country supports extending an agreement by major oil producers to limit output beyond next March because the deal is necessary to balance supply with demand.
In a statement, Prince Mohammed said that Saudi Arabia “affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand.”
“The journey toward restoring balance to markets, led by the Kingdom, is proving successful despite the challenges,” he said.
The effect of the production limits approved by major oil countries has been muted by rising output from US shale-oil producers. The prince said that high demand for oil has absorbed the increased supply from shale oil.
Saudi Arabia is the world’s largest producer and the most influential member of Opec. The agreement, which kicked in at the start of 2017, also included Russia and other non-Opec countries.