Initial agreement reached on extention of oil production cuts

Baku. 20 April. REPORT.AZ/ Oil-producing countries have reached an agreement about a possible extension of output cuts. 

Report informs citing the RIA Novosti, Saudi Arabia oil minister Khalid al-Falih said at oil conference in United Arab Emirates (UAE).

Although not all countries were involved, the initial agreement was reached to extend the agreement for oil production cut.

Notably, on November 30, 2016 oil-producing countries in order to achieve stability in the oil market have decided to reduce production for 6 months since the beginning of the year.

Khalid al-Falih also said that the extension of the term of the agreement is not important, the main goal is to ensure balance on the market: "Weather it will be 6, 9 or 12 months, it does not matter. The main thing is to achieve goal."

Minister noted that, the first three months of production cuts by the Organization of Petroleum Exporting Countries and other major producers have failed to achieve a targeted reduction in inventories below their five-year historical average.