2017.11.1622:48:00UTC+00Saudi Arabia: OPEC Should Announce Production Cut Extension in Vienna Meeting

Saudi Arabia's Energy Minister Khalid Al-Falih said OPEC and its allies will likely announce an extension of their production curbs when they convene at the end of November.

The official said that OPEC is not likely to lower surplus oil stockpiles to average levels by the time the current agreement ends in late March. Meanwhile, Russia, who also participates in the deal, said it is not entirely convinced a decision has to be finalized when producers meet on November 30, according to sources.

In an interview, al-Falih said that there is a need to understand that the level targeted by the deal will not be reached at the end of March, which is at a five-year average. He said this meant the deal needs some kind of extension. He expressed is preference to give some light to the market and announce on the meeting date their next course of action.

He added that the producer cartel will make sure that its “exit strategy” from the current deal will be a gradual adjustment that will prevent any glut from returning to the oil markets.

The oil minister also said that foreign investment in Saudi Arabia will be unmoved by a string of arrests of high ranking officials and affluent people.