Oil Producers Will Consider Output Cut Extension

Support is growing within OPEC oil producers for an extension to output cuts.

Oil producers pledged to consider extending their pact limiting supply.  Furthermore, half a dozen nations said more time was needed to drain swollen stockpiles.

Five OPEC members and Oman backed an extension.  Kuwait said it should be for six months. The ministers met this weekend in Kuwait City and asked the Organization of Petroleum Exporting Countries to make a recommendation in a month on the possibility of prolonging the supply curbs.

“We are ready to support” extending the deal, which took effect in January.  This from Venezuela’s Oil Minister Nelson Martinez.  Fellow OPEC producers Iraq, Algeria and Angola have also backed an extension. “It does make sense to extend the agreement for another six months,” said Mohammed Al Rumhy, energy minister for non-OPEC producer Oman.

After Sunday’s meeting, Kuwait’s Almarzooq, the compliance committee’s chairman, said OPEC is assessing whether to prolong the cuts for another six months. But the committee in its final statement removed a section in the draft that said it recommended a six-month extension.  It also added a sentence saying the ministerial committee “will deliberate before submitting its recommendation to the participating countries.”

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