May 24, 2017

MORE FOR US! Kuwait says OPEC, non-OPEC could deepen oil cuts.

The top oil producer in OPEC, Saudi Arabia, favors extending the output curbs by nine months rather than the initially planned six months, to speed up market rebalancing and prevent crude prices from sliding back below $50 per barrel.

OPEC members Iraq and Algeria as well as top non-OPEC producer Russia also said they support a nine-month extension.

As ministers gathered in Vienna for informal consultations, Saudi OPEC ally Kuwait said discussions included the possibility of deepening the cuts or prolonging them by 12 months.

“All options are on the table,” Kuwaiti oil minister Essam al-Marzouq told reporters.

Unless they bring American frackers to the table — and they can’t — all these talks amount to is how how much marketshare OPEC/non-OPEC is willing to cede to us in order to stabilize prices.

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