Saudi Arabia: Oil Producers Will Cooperate Beyond 2018


Oil prices climbed on Monday, pushed higher by Saudi Arabia’s comment that cooperation between oil producers currently withholding supplies would continue beyond 2018.
Strong global economic growth and a drop in U.S. drilling activity also supported crude oil price, traders said.
Brent crude futures were at $68.89 a barrel at 0315 GMT, up 25 cents, or 0.4 per cent from their last close.
Brent on Jan. 15 rose to $70.51, its highest since December 2014.
U.S. West Texas Intermediate (WTI) crude futures were at $63.61 a barrel, up 24 cents, or 0.4 per cent, from their last settlement.
WTI climbed to $64.89 on Jan. 16, also its highest since December 2014.
Saudi Arabia, the world’s top oil exporter and de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), said on Sunday that major oil producers were in agreement that they should continue cooperating on production after their deal on supply cuts expires this year, Reuters report.
“There is a readiness to continue cooperation beyond 2018…The mechanism hasn’t been determined yet, but there is a consensus to continue,” Saudi Arabia’s Energy Minister Khalid al-Falih said in Oman.
A group of oil producers including OPEC and Russia, started to withhold production in January last year to prop up prices. The deal is set to expire at the end of 2018.

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