Saudi Arabia - inclusion of small producers to oil output cut extension enough to reduce oil inventories

The Saudi Energy minister, Khalid al-Falih told a news conference in Riyadh on Sunday that extending the output cut deal plus adding one or two small producers will be more than adequate to reduce oil inventories to the five-year average.

Russia and Saudi Arabia agreed last week to prolong the deal on cuts which is due to expire in June, until March 2018. Most other OPEC producers have expressed support for Russia and Saudi’s proposal.