Saudi Arabia Energy Minister: Khalid al-Falih mentioned in Thursday that the Organization of Petroleum Exporting Countries along with Russia and other non-OPEC members are seeking to extend the ongoing crude output cuts this year to 2019. The ongoing supply cut is implemented to limit crude production in order to balance the continuous output glut as well as to stabilize the oil market.
In January 2017, the Organization of Petroleum Exporting Countries along with Russia and non-OPEC members agreed to cut 1.8 million barrels per day from global markets in order to terminate the persistent supply glut. The move helped support oil prices to current levels of approximately $65 a barrel.
In addition, Khalid al-Falih mentioned that they still have some time to go before they bring inventories down to the level OPEC, Russia and non-OPEC members consider normal. This was followed by the announcement that this will all be identified when OPEC and other oil producers meet in Vienna in June to discuss further coordination.
In accordance to this, prices of oil rose higher on Friday, due to the announcement given by the Saudi Arabian Energy Minister. Oil prices climbed by over 1%, the United States West Texas Intermediate settled at $64.97 per barrel, which was 1% or 67 cents higher from their previous close. The international benchmark: Brent crude futures settled at $69.52 a barrel, which was 0.9% or 61 cents higher from their previous settlement.