Four major oil producers agree to keep output cut extensions on the table

Four of the world's top oil producers agreed to keep all options 'on the table' in order to ensure stability in the oil market, including the possibility of prolonging the output cuts that were already in force, beyond their expected end-date of March 2018.

According to multiple reports, following meetings on the sidelines of an Organisation of Islamic Cooperation event held in Astana, Saudi Arabia, Venezuela, the United Arab Emirates and Kazhakstan said another extension of the co-ordinated November 2016 output cut deal should be considered an option.

Under the terms of the original deal to reduce production, reached in November 2016, the Organisation for the Petroleum Exporting Countries and other large producers like Russia agreed to take roughly 1.8m barrels a day of supplies off the market, in order to curb an already burgeoning surplus.

The deal was extended for another nine months in May 2017.

To take note of, both Saudi energy minister Khalid al-Falih and his Venezuelan counterpart, Eulogio del Pino, reportedly said their two countries were already exceeding their commitments under the output cut deal.

They also voiced "optimism" on the outlook for the global supply and demand balance for crude in 2018.

In parallel, the Saudi government said that the UAE had cut its crude oil allocations for September and October by 10%, whereas Kazhakstan said it had the ability to curtail output despite the ramp-up of production at its new Kashagan field.