Oil nations look at extending supply cut

Major oil producers are considering extending their recent cuts to output in a fresh bid to boost prices.

Countries in the oil cartel Opec and several other oil
 nations started to reduce production at the start of 2017.

The move initially pushed up the oil price, but it has dropped
 in the last few weeks on fears the limits would not be enough to deal with an oil glut.

A group of ministers agreed on Sunday to review extending the cuts by six months, taking them to the end of 2017.

At a meeting in Kuwait, they requested that officials report next month "regarding the extension of the voluntary production adjustments".

Opec countries and 11 other oil-producing nations, including
Russia, agreed in December 2016 to slash production, the 
first time in 15 years that a global pact had been struck.

'Jittery'

The price of Brent crude peaked at over $57 a barrel in January, before slipping back to below $51 a barrel in 
recent weeks.

That was after Opec revealed a surprise jump in global 
crude stocks in February, and US oil producers - who are 
not part of the cuts - started to increase production again.

Abhishek Deshpande, an oil analyst at Natixis, said the
price had fallen after oil traders became "jittery" about the market.

In particular, they were uncertain about the commitment
 of Russia and Saudi Arabia, Opec's biggest member, to the cuts, Mr Deshpande said.

The oil countries now need to show "discipline" and cut 
back on production in the coming months because stocks 
are still too high, he said.

"The chances remain high for an extension to the supply 
cuts, as long as there are more stockpile withdrawals," he added.