Producers keen on extending Opec-led oil limits
Opec countries mull an extension of nine months or longer to rebalance the market, says sources
Dubai/London — The Organisation of the Petroleum Exporting Countries (Opec) and nonmember oil producers are considering extending a global-supply cut for nine months or more to avoid a price-sapping output increase in the first quarter of 2018, when demand is expected to be weak, Opec and industry sources say. In 2016, Opec, Russia and other producers agreed to curb production by 1.8-million barrels per day for six months from January 1. Oil prices have gained support but global inventories remain high, pulling crude back below $50 a barrel and putting pressure on Opec to extend the cuts to the rest of 2017. Production from countries not participating in the deal, such as the US, has also been rising, keeping crude below the $60 level that Opec kingpin Saudi Arabia and others would like to see. The sources said Opec countries were discussing whether an extension of nine months or longer was needed to give the market more time to rebalance. An industry source said there had been disc...
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