2017.10.2502:38:00UTC+00Saudi Arabia Resolved to End Global Oil Glut

Saudi Arabia, world's top oil exporter, is determined to lower stockpiles further via an OPEC-initiated deal to limit crude production and lifted the prospect of extended restraint once the deal ends to avoid a buildup in surplus supplies.

During a meeting in Riyadh, Saudi Energy Minister Khalid al-Falih said that the focus continues to be on reducing the the level of oil stocks in OECD industrialized nations down to their five-year average.

OPEC, along with Russia and other producer countries are participating in a deal to lower production by around 1.8 million bpd since January. The deal is set to end in March 2018, but they are considering extending it.

Falih said that the group is flexible and are keeping all options on the table. He also expressed their determination to do everything in their power to reduce global inventories down to normal levels.

The market has been worried that once the supply cut deal comes to a conclusion, producers will bolster their production once more, causing prices to decline. However, Falih increased the prospect of continued output restraint in order to prevent such scenario.