© Reuters. Saudi Arabia Energy Minister Khalid al-Falih attends the International Economic Forum in St. Petersburg
. By Katya Golubkova and Olesya Astakhova
At present, the kingdom did not want a fight for market share with the United States nor a repeat of the price decline five years ago.
Saudi Energy Minister Khalid al-Falih said OPEC was on the verge of extending a pact beyond June to cut oil supplies, although more talks were needed with non-OPEC countries that were part of the production agreement.
The Organization of Petroleum Exporting Countries plus Russia and other producers, an alliance known as OPEC +, have signed an agreement The pact ends this month and the group will meet in the coming weeks to decide on their next move.
"On the OPEC side, a rollover is almost in sight b ag. The question is to calibrate with non-OPEC," said Falih at a business forum in the Russian city of St. Petersburg. "I do not think so
"I hope it will be an easy decision and we will go over it, but if it does not, we will be flexible in our position in the Kingdom," he said ,
Oil prices have risen 1
Falih said in the last three weeks. When it was a particularly strong decline, he had not been good. A price below $ 60 would not give oil companies enough confidence to invest. Stocks are being built.
Falih said the kingdom pumped 700,000 bpd below its target of 10,311 million bpd, implying a production of abo ut 9.60 million bpd. "Of course we want to lower inventories," he said.
In previous comments, the minister had said he was unwilling to engage in a race to boost oil production to offset lower prices. This made the price slump from 2014 to 2015 unacceptable.
Falih said the oil market was still not fully stable and prices were affected by factors beyond OPEC's control, although the market showed some encouraging signs.
"I think the demand is rather healthy," he said. "I think the mood is shaky due to trade issues, physical demand is very good, we see no decline, I do not think there will be a trade war," the minister said.
Fusion Media or others affiliated with Fusion Media assume no liability for any loss or damage to the Confidence in the information contained on this Web site, including data, quotations, graphics and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading on the financial markets. This is one of the riskiest possible forms of investment.