The world will still have a surplus of oil by end-March next year, Saudi Arabia’s energy minister said, signalling a willingness to extend output cuts when Opec meets at the end of November on whether to extend caps well into 2018. Khalid Al Falih also said he did not want oil prices to rise too fast and too soon to shock consumers, adding that the exit from production cuts would be gradual to make sure market reaction is smooth.
“We need to recognise that by the end of March we’re not going to be at the level we want to be which is the five-year average, that means an extension of some sort,” he said, referring to inventory levels in the developed world.
“We have gone over 50 per cent in reducing excess inventories but that means we still have some excessive inventories that we need to drain,” he told journalists on the sidelines of the UN climate conference in Bonn, Germany. Read More…
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