On Monday, Russian and Saudi energy ministers said in a joint statement that Moscow and Riyadh meant to propose a 9-month extension of the current Vienna agreement on oil output cuts on the existing conditions at the OPEC ministerial meeting in late May.
Russia's Minister for Energy, Alexander Novak, said that the Russian budget may receive additional 1.5 trillion rubles this year due to the reduction in oil production and the position of oil prices on the level of 50-60 dollars per barrel.
There is satisfaction on both sides of the strength of global demand in addition to the high commitment to most of the countries participating in the agreement, Marzouq said in the statement. "There are no fast solutions to end this situation, and the only solution possible is to let oil prices work their way" to clear the oversupply, Al-Husseini said from the Saudi city of Dhahran.
OPEC estimated last week however, that commercial inventories in OECD countries were still 276 million barrels above the five-year average benchmark. The deal prescribes the possibility of extension.
Kuwait committed to cutting its output by 131,000 b/d to 2.707 million b/d in January under the OPEC agreement. Thus, OPEC countries reduced the average daily production by nearly 1.2 million barrels.
Brent futures were up 4 cents, or 0.1 percent, at $51.86 a barrel by 11:32 a.m. EDT.
OPEC crude production rose by 65,000 barrels per day in April to 31.78 million barrels per day, as higher output from Nigeria and Saudi Arabia more than offset lower flows from Libya and Iran, the International Energy Agency (IEA) said in its May Oil Market Report.
Global oil inventories increased by 100,000 barrels a day in the first quarter - just 8% of their gain a year ago - and are set to drop by 700,000 a day in the second, the agency said.