Opec prolonging cut would achieve mission to clear oil glut

If Opec and Russia complete the nine-month extension, stocks will fall to about 10 million barrels below that average next March, according to Bloomberg calculations using the EIA

LONDON: The world’s two biggest oil exporters seem to have finally figured out how to eliminate a global surplus that’s kept crude prices in check for almost three years.

Saudi Arabia and Russia said in Beijing on Monday they favor prolonging this year’s oil curbs to the first quarter of 2018. If they convince fellow producers to adopt the strategy when Opec and its partners meet next week, it will pare near-record inventories in developed nations by 8% and erase the glut weighing on the market, according to Bloomberg calculations using US government data.