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Opec leans towards oil cut extension

Updated Mar 21, 2017 08:50am

DUBAI: Opec oil producers increasingly favour extending beyond June a pact on reducing crude supply to balance the market, sources within the group said, although Russia and other non-members need to remain part of the initiative.

The Organisation of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1 for six months, the first reduction in eight years. Russia and other non-Opec producers agreed to cut half as much.

The deal has lifted oil prices, but inventories in industrial nations are rising and higher returns have encouraged US companies to pump more. A growing number of Opec officials believe it may take longer than six months to reduce stocks.

Published in Dawn, March 21st, 2017