HE Minister of Energy and Industry Dr Mohammed bin Saleh Al Sada confirmed that the oil market is returning to a balance, after three years of buildup in oil stocks.
In a statement released today to the press by the Ministry of Energy and Industry, His Excellency said that the transformation was set about by the excellent compliance to the agreed production cuts by OPEC members and participating non-OPEC countries.
OPEC and eleven non-OPEC producers had agreed late last year to cut production by 1.8 million barrels per day, in what was later known as the Vienna Accords.
HE the Minister said that commitment from OPEC members since January 1 has been unprecedented. The participating non-OPEC members also showed considerable commitment to cutting production, His Excellency added.
HE Minister Al Sada expressed his optimism that extending the production cuts to the second half of 2017 will have a positive impact on market stability. His Excellency added that he sees merit in extending the production cuts to the first quarter of 2018, as the first quarter as a period when demand is seasonally lower.
A number of oil producers have shown their support over the past few days of an extension of the deal. A final decision is expected after the upcoming OPEC ordinary meeting scheduled in Vienna later this week, on May 25, which will be followed by a joint meeting between OPEC and participating non-OPEC countries.
QNA