Saudis push for 9-month extension of oil cut: sources

Crude exporting giant Saudi Arabia is lobbying oil ministers to agree next week on a nine-month extension to OPEC-led supply cuts, sources told Reuters, as Riyadh looks to make sure a price-plunging oil glut is erased.

The Organization of the Petroleum Exporting Countries, non-member Russia and nine other producers are cutting oil output by about 1.8 million barrels per day (MMBPD) until March 2018, and will discuss extending the deal at a Nov. 30 meeting in Vienna.

Benchmark Brent crude have risen to roughly $65 a barrel, the highest since 2015, due to lower inventories, Kallanish Energy reports.

However, OPEC is wary prices could fall again since excess supply persists, while a flare-up in Middle Eastern political tensions has also played a part in the rally, Reuters reported.

“The Saudis are lobbying to have a decision in November for nine months,” a senior oil industry source with knowledge of the matter who requested anonymity told Reuters.

The OPEC-led group is also weighing other options. Reuters reported in October, citing unnamed OPEC sources, the producers were leaning towards extending for nine months, but could postpone a decision until early next year, given the recent rise in prices. 

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