Russia, Saudi Arabia see eye to eye on cut

BEIJING, May 15, 2017 – Russia and Saudi Arabia have reached an agreement on extending oil production cuts to March 2018, the countries announced on Monday.

In a statement released in China, Russian Minister of Energy Alexander Novak and his Saudi counterpart, Khalid Al Falih, said they would do “whatever it takes” to help stabilise global oil markets.

“There has been a marked reduction to the inventories, but we’re not where we want to be,” Al Falih said at a briefing in Beijing.

The Saudi-Russian move is expected to go a long way in convincing other OPEC and non-OPEC members to extend their commitment to the November 2016 deal at the upcoming May 25 gathering.

“The preliminary consultations show that all sides remain committed [to the deal]. I do not see any reasons for any states to quit the deal,” Novak was quoted as saying.

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