Saudi oil minister Ali Ibrahim Naimi today said oil producers will not cut output to support a recovery in crude prices. Via CNBC, Naimi said at IHS CERAWeek a recent production freeze agreement between Saudi Arabia and other nations would help reduce the global oil surplus over time. Naimi said oil exporting countries would not follow through on cutting production even if they agreed to do so.
A Russian energy official said last week the production freeze agreed to by Saudi Arabia, Russia, Qatar and Venezuela could cut in half a global oil surplus of 1.8 million barrels per day. The deal is contingent on other countries joining in.
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