OPEC and non-member oil producers will exit their ongoing agreement limiting crude oil production gradually and smoothly in order not to cause market shock by early next year, when demand slows for seasonal factors, Saudi energy minister Khalid al-Falih told Reuters.
It is “very unlikely” the alliance will exit the agreement by June, in OPEC's next meeting, Al-Falih said, adding that he believed the cuts could be adjusted at some point.
OPEC can change the level of stocks it is targeting through output reductions, he added.
OPEC agreed with 11 non-member oil producing nations in December 2016 to cut production by a combined 1.8 million barrels per day, in order to tackle global supply glut and boost prices.
The deal was extended twice last year and will run until the end of 2018.
On a separate note, Al-Falih told CNBC Arabia that oil prices can still reach levels high enough to allow new investments in exploration.
Oil investments have dropped by more than half compared to four years ago, and have not returned to normal despite higher prices, he added.
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