Baghdad / follow - up Farah pumice is
preparing key oil producers to expand production cuts until March 2018 in an attempt to reduce global supply glut, and reducing global inventories to an average of five years to stabilize the market. As energy ministers agreed from members of the Organization of Petroleum Exporting Countries Countries (OPEC) and Russia, the largest of its partners outside the organization, to do everything they can to achieve the desired goal in achieving stability in the market. OPEC agreed with some non - member states last December to cut production by 1.8 million barrels a day for six months to help stabilize oil prices, it is due to expire Siran period that agreement at the end of next June.
So appealed to OPEC and other producers, including the United States, to stop pumping crude in large quantities, after it said in its monthly report published recently, the global Alosouk is still suffering from oversupply.
The Saudi Arabia and Russia agreed at a meeting on the need to extend production cuts agreement, targeting the accession to the Convention and other producing countries.
After the meeting, Russian Energy Minister Alexander Novak said: " The main objective of the proposal to extend a cut in oil production agreement is to reduce global inventories to an average of five years and to stabilize the market , " stressing that the main objective to achieve a balance in the market and the discharge of the surplus (of stocks), not main objective is the price.
Novak said that the new proposal is assumed continuation of the agreed cuts, amounting to about 1.8 million barrels per day with the extension of the time frame for a period of nine months, believing that the market will not be able to balance by the end of the year.
He also expressed hope that the accession of three to five other countries of the Global Compact, where sources indicate that Turkmenistan one of the countries that may join the agreement. On the other hand , the Russian ministry said that the Saudis and Russian ministers will press other producers to reach a "full consensus" on the extension of the policy of restraint in the scheduled meeting of OPEC next week.
Supply cuts to restore prices from the low level has helped reached $ 26 a barrel in early last year.
Oil prices continue to reap the gains after assurances of Russia and Saudi Arabia, the two largest oil producers in the world, on the extension of an agreement to cut production.
International benchmark crude blend "Brent" rose by 0.42 percent , the equivalent of 22 cents to $ 52.04 a barrel, after global crude futures trading closed higher by 1.9 percent.
While, Brent crude rose US "West Texas Intermediate" by 0.43 percent , or 21 cents to $ 49.06 a barrel, after the previous session ended with an increase of $ 1.01 or 2.1 percent.
While the OPEC basket containing recorded 13 kinds of crude oil from member states to $ 49.72 a barrel. Oil traders were surprised by the strong dialect to advertise, even though they are waiting to see whether all agree to participate in the agreement on the Saudi-Russian position states, when it meets in Vienna on May 25 to decide production policy.
Finds observers that the fact that the Saudi agreement and Russia on "production cuts" until the end of the first quarter of 2018 sends a strong signal to the market about their determination to tackle abundant supply, expecting to boost that prices above $ 50 in the coming weeks, despite the fact that oil production in the United States, is an obstacle in the way of higher prices, especially after doubling the number of rigs operating there over the past year.
The International Energy Agency reported that the oil market to regain its balance and that the pace of shrinking the gap between supply and demand is accelerating , although the impact of OPEC supply cuts does not appear on the stocks so far.
In its monthly report , the agency kept its expectation for the growth of global oil demand in 2017 at 1.3 million barrels per day as a result of the slowdown in consumer countries such as the United States, Germany and Turkey.