Kuwait sees OPEC mulling longer oil cuts at June meeting

Kuwait says market conditions to determine any extension of OPEC-led cut deal

Kuwait says market conditions to determine any extension of OPEC-led cut deal

OPEC's next planned meeting in June will be a chance to review its oil production cut agreement, but the producer group will continue with cuts through 2018, Kuwait's oil minister Bakheet al-Rashidi said Monday.

"The agreement will continue until the end of this year", al-Rashidi said, adding that "it would depend on market conditions whether to extend this agreement beyond 2018 or to reach a permanent agreement between OPEC and non-OPEC to support market stability". Kuwait is one of six countries responsible for monitoring compliance with the cuts accord that took effect in January 2017.

OPEC and allied producers will consider extending an agreement to cut oil output into 2019 when they meet in June to assess the market, Rashidi said.

OPEC and its partners agreed in late 2016 to cut production and then extended the limits until the end of this year in a drive to clear a glut in crude inventories. "In the months ahead, we will look to institutionalise this long-term framework for continuity with an inclusive and broad-based participation", Barkindo said.

Saudi Arabia and Russian Federation are leading discussions on extending the OPEC/non-OPEC coalition's alliance.

Reuters cited OPEC Secretary-General Mr Mohammad Barkindo as saying that he sees the global oil market rebalancing in the second to third quarters of 2018, earlier than a previous forecast of the year-end.