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Saudi Arabia has trimmed its oil production to below 10 million barrels per day (mbd), its lowest level in almost two years, Reuters reported on Thursday, citing the kingdom’s energy minister Khalid Al-Falih at a conference in Abu Dhabi.
The move came as part of as part of an agreement last month by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members to end a supply glut and shore up market prices.
The deal will see the producer group and non-members jointly reduce production by nearly 1.8 mbd during the first half of 2017.
Saudi Arabia has reduced oil production by over 486,000 barrels per day (bpd) in the wake of the agreement – more than it had pledged, Al-Falih said.
The kingdom’s output is "not significantly below" 10 mbd currently, but further cuts are planned in February, he added.
The minister said that he expects the global oil market to restore balance between supply and demand in two or three years, with oil demand anticipated to rise by over 1 mbd this year.
When asked about a possible extension for the agreement, Al-Falih said it was too early to tell but the parties to the deal have signaled they are ready to extend it if necessary.
Brent crude futures closed 3 percent lower on Friday at $55.45 per barrel (bbl), while US West Texas Intermediate (WTI) crude ended at $52.37/bbl.
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