On May 15, the governments of Saudi Arabia and Russia agreed to extend the output cut deal until March 2018. In a joint statement, energy ministers of both countries said the deal would contribute to stabilizing the global oil market.
At a joint press briefing, Saudi Energy Minister Khalid al-Falih and his Russian counterpart Alexander Novak said that the next output cut will be implemented in the same volume as that of the current deal.
Earlier, OPEC and 11 non-OPEC members decided to cut oil production in the first half of 2017 by 1.8 million barrels a day in a move to balance oil prices. Russia committed to cut as much as 300,000 barrels a day.
During the briefing in China, Russia and Saudi Arabia agreed to do whatever it takes to reduce global inventories to the five-year average. Moreover, the energy ministers urged other producers to support the extension of the deal.
