Saudi Arabia - The oil market is moving towards a balance between supply and demand with the help of an agreement reached between the Organisation of the Petroleum Exporting Countries (Opec) and other producers to cut production, the chief executive of Saudi Aramco said on Thursday.
Opec, Russia and other producers agreed to cut output by 1.8 million barrels per day (bpd) for the first half of 2017, although persistent high global inventories have depressed oil prices.
Opec meets again on May 25 and is expected to extend the pact until the end of 2017.
“The market is moving toward rebalancing,” Aramco’s chief executive Amin Nasser said. “I see the oil market pointing upward and expect it to continue improving.”
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“This returning confidence is being driven by improving fundamentals, and accelerated by the production agreement reached last year,” he said referring to the Opec-led cuts.