OPEC close to agreement on extending oil deal: Al-Falih

The Organization of the Petroleum Exporting Countries (OPEC) is close to agreeing to extend the oil cut pact beyond June, although more talks were still needed with non-OPEC countries that were part of the production deal, Reuters reported on Friday, citing Energy Minister Khalid Al-Falih.

“On the OPEC side, a rollover is almost in the bag. The question is to calibrate with non-OPEC,” Al-Falih was quoted as saying at an economic forum in the Russian city of St Petersburg. “I don’t think there will be a need to deepen the cut.”

The last three weeks had not been good, Al-Falih said, adding that a price below $60 would not offer oil firms enough confidence to invest.

The minister had said he was unwilling to engage in a race to boost oil output to compensate for lower prices, saying a return to the situation that led to the price crash of 2014-2015 would be unacceptable.

OPEC and other oil producers including Russia have agreed to cut output by 1.2 million barrels per day (bpd) from Jan. 1. The pact ends this month and the group meets in coming weeks to decide their next move.