Gulf Arab oil producers have reached an agreement about a possible extension of output cuts beyond June to reduce stockpiles of crude, Oman’s oil minister said. His Saudi Arabian counterpart confirmed that producers arrived at an initial deal on prolonging cuts. GCC countries agreed to push for an extension in a meeting, Oman Oil Minister Mohammed Al Rumhy said. GCC states are OPEC members Saudi, Kuwait, Qatar and UAE, in addition to Oman and Bahrain. GCC states are participating in a global 6-month agreement to reduce oil output that took effect in January.
The first three months of production cuts by the OPEC and other major producers have failed to to achieve a targeted reduction in inventories below their five-year historical average, Saudi Arabia’s Khalid Al-Falih said at a conference in Abu Dhabi, the UAE capital.