Qatari Minister of Energy and Industry, Dr. Mohammad bin Saleh Al Sada, said Saturday, the oil market is returning to a balance, after three years of buildup in oil inventories.

“The transformation was set about by the excellent compliance to the agreed production cuts by OPEC members and participating non-OPEC countries,” the minister was quoted as saying, in a statement.

He was referring to the agreement reached by OPEC and 11 non-OPEC producers in Vienna, late last year, to cut the glut in oil production by 1.8 million barrels per day, as of Jan 1, 2017.

The commitment by OPEC members since Jan 1 has been unprecedented, he said, noting that, the participating non-OPEC members also showed considerable commitment to the agreement.

Al Sada expressed optimism that, extending the production cuts to the second half of 2017, will have a positive impact on market stability.

He added that he sees merit in extending the production cuts to the first quarter of 2018, as the first quarter as a period when demand is seasonally lower.

A number of oil producers have shown their support over the past few days, of an extension of the deal. A final decision is expected during the OPEC ordinary meeting in Vienna on May 25 and a joint meeting by OPEC and non-OPEC partners.

Source: NAM News Network