Oil producers focusing on reducing stocks, says Al-Falih

Oil producing countries will continue to focus on reducing crude inventories, as OPEC is targeting fundamentals rather than oil prices, Reuters reported, quoting Saudi Arabia’s energy minister Khalid Al-Falih on Thursday.

Meanwhile, Al-Falih expressed concerns about future energy security, especially in Asia, amid strong demand growth, affirming the Kingdom’s support for a global oil output cut deal.

"I am concerned about future energy security — especially in Asia, where demand is rising much faster than the industrialized economies. Without the higher investment levels... energy security may be fatally compromised," Al-Falih added at the 7th Asian Ministerial Energy Roundtable in Bangkok.

OPEC members, along with Russia and nine other producers have agreed to slash overall output by about 1.8 million barrels per day since January. The pact is valid through March 2018, but the producers are considering extending it.

OPEC is scheduled to meet at its headquarters in Vienna on November 30.