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Saudi Governor: Consensus emerging for OPEC, non-OPEC to extend output pact

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There is an emerging consensus among OPEC and non-OPEC countries who took part in a global pact to cut crude output on the need to extend the agreement beyond June to help clear a supply glut, Saudi Arabia’s OPEC governor said on Friday.

The Organization of the Petroleum Exporting Countries, Russia and other producers have agreed to curb production by 1.8 million barrels per day (bpd) until June 30.

“There’s an emerging consensus among participating countries on the need to extend the production agreement reached last year,” Adeeb Al-Aama told Reuters.

“Based on today’s data, there’s a growing conviction that a six-month extension may be needed to rebalance the market, but the length of the extension is not firm yet,” he said. A formal decision will be taken when the OPEC ministers meet on May 25.