Saudi energy minister says OPEC is about to accept the extension of the oil pact By Reuters

Katya Golubkova and Olesya Astakhova

ST PETERSBURG (Reuters) – Saudi Arabia said on Friday that OPEC and its allies should extend oil production cuts to current levels, as the kingdom does not want a fight for a share of the market with oil prices. United States or a further fall in prices five years ago.

Saudi Energy Minister Khalid al-Falih also said that OPEC was about to agree to extend a pact on reducing oil supplies beyond June, although more Talks are still needed with the non-OPEC countries that signed the production agreement.

The Organization of the Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC +, signed an agreement to reduce the production of 1.2 million barrels per day (bpd) as of January 1st. The pact ends this month and the group meets weeks ahead to decide on their next move.

"On the OPEC side, a turnover is almost in the bag.The issue is to calibrate with non-OPEC members," said Falih at an economic forum held in St. Petersburg, Russia. "I do not think it will be necessary to deepen the cut."

"I hope it will be an easy decision and that we will move on, but if it is not the case, we will be flexible as to our position in the kingdom," he said. -he declares.

Oil prices have risen 16% since the beginning of the year, thanks in part to the OPEC + agreement. But they fell from a peak above 75 dollars in April to less than 62 dollars a barrel because of concerns about demand due to a trade dispute between the United States and the United States. China and the slowdown in economic growth.

Falih said the past three weeks, marked by a particularly sharp drop, have not been good, adding that a price below $ 60 would not provide oil companies with enough confidence. to invest.

Saudi Arabia has cut supply more than the OPEC + agreement intended to prevent stockpiling.

Falih said the kingdom was pumping 700,000 barrels a day below its target of 10.311 million barrels a day, which represents an output of about 9.60 million barrels a day. "Of course we want to reduce stocks," he said.

In previous comments, the minister had stated that he was not prepared to embark on a race to increase oil production in order to offset lower prices, saying that one return to the situation that led to the fall in 2014-2015 prices would be unacceptable.

Falih said the oil market was not yet completely stable and that prices were influenced by factors beyond the control of OPEC, even though the market had shown encouraging signs.

"I think the demand is pretty healthy," he said. "I think the climate is fragile because of trade problems, the physical demand is very good, we do not see any decrease, I do not think there will be a trade war," said the minister.