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Saudi Arabia will support the extension of an oil production cut agreement between OPEC and Oil non-member countries in order to balance global crude supply and demand, the Kingdom’s Crown Prince Mohammad bin Salman said in a statement on Saturday.
“The Kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand,” Prince Mohammad said, noting that high demand for oil has absorbed the increase in shale oil production.
“The journey towards restoring balance to markets, led by the Kingdom, is proving successful despite the challenges,” he added.
The prince made similar remarks in an interview with Reuters last week, following which Brent crude jumped nearly 2 percent on Friday, crossing the $60 mark to close at $60.44 per barrel (bbl).
OPEC agreed with a group of non-member oil producing countries in December last year to cut production by a combined 1.8 million barrels per day (mbd) in order to boost prices and tackle the glut in the market.
The deal was extended in May this year until March 2018.
The producer group will hold its ministerial meeting in Vienna at the end of November.
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