Saudi Energy Minister Khalid al-Falih said on Sunday that OPEC and its allies led by Russia would most likely extend their oil output-cutting deal by nine months and that no deeper reductions were needed.
“I think most likely a nine-month extension,” Falih told reporters when asked about Saudi preferences.
Asked about a deeper cut, he said: “I don’t think the market needs that.”
“Demand is softening a little bit but I think it’s still healthy,” he said, adding that he expected the market to balance in the next six to nine months.
Russia has agreed with Saudi Arabia to extend the deal with OPEC, Russian President Vladimir Putin said earlier, as oil prices come under renewed pressure from rising U.S. supplies and a slowing global economy.
Oil ministers from the Organization of the Petroleum Exporting Countries meet on Monday in Vienna, followed by talks with non-OPEC oil producers on Tuesday.