MOSCOW (Pakistan Point News / Sputnik - 03rd June, 2019) Participants of oil output cut deal, which includes the Organization of the Petroleum Exporting Countries (OPEC) and some non-cartel producers, must reduce commercial oil reserves to support market stability beyond June, Saudi Energy Minister Khalid Falih said in an interview.
"I would like to reiterate my confidence, based on my discussions with several key producers, and on our track record, that we will do what is needed to sustain market stability beyond June. To me, that means drawing down inventories from their currently elevated levels," Falih told the Arab news newspaper.
The minister recalled that the participants of the OPEC-non-OPEC deal had previously taken on commitments to achieve stability in the oil market and complied with them.
"And I am making that commitment again," he stressed.
At the upcoming meetings of OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) in June in Vienna, the parties will consider the current and future economic conditions and the situation on the oil market, as well as their impact on the supply and demand balance and changes in commercial stocks, Falih said.
"Guided by this review, we will deliberate the best course of action, and work on reaching a consensus," he concluded.
On December 7, participants of the OPEC-non-OPEC oil output cut deal, which has been in force since 2017, agreed to reduce overall production by 1.2 million barrels per day in the first half 2019. OPEC member states pledged to cut production by 800,000 barrels per day, while non-OPEC countries agreed to reduce it by 400,000 barrels per day.
