Saudi says May will be key to decide on extending supply cut deal

FILE PHOTO: Saudi Arabia's Energy Minister Khalid al-Falih speaks during the Saudi-India Forum in New Delhi
FILE PHOTO: Saudi Arabia’s Energy Minister Khalid al-Falih speaks during the Saudi-India Forum in New Delhi, India, February 20, 2018. REUTERS/Anushree Fadnavis/File Photo

April 8, 2019

RIYADH (Reuters) – The Saudi energy minister said on Monday it was premature to say whether there was consensus among OPEC and its allies to extend a supply cut agreement, but a meeting in May would be key as by then the effect of current reductions would be clearer.

A joint OPEC and non-OPEC ministerial committee known as the JMMC is set to meet in May.

“JMMC will be a key decision point because we will certainly by then know where the consensus view is and, more importantly, before we ask for consensus, we will know where the fundamentals are pointing. I think May is going to be key,” Khalid al-Falih said.

Oil inventories remain higher than average but the market is on its way towards rebalancing, Falih added.

(Reporting By Rania El Gamal and Stephen Kalin; Editing by Kirsten Donovan)

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