According to the official Kuwait News Agency, known also as KUNA, Oil Minister Essam al-Marzouq "affirmed full support of the joint position" taken by Saudi Arabia and Russian Federation to extend the agreement to March 31.
Russian Energy Minister Alexander Novak said the proposed extension of output cuts aimed to bring global commercial oil inventories down to the five-year average and stabilize the market.USA bank Goldman Sachs said the deal would likely extend the oil price rebound "although the rally so far.has remained modest compared to the move that occurred last year when the OPEC cuts were first announced".
"The ministry stressed that the agreement on oil output cuts had a positive impact on oil prices, adding that additional steps to ensure market stability in the long term were still needed as global commercial oil reserves were above their five-year average". Prices on the market will change sharply, should the agreement be reached.
According to estimates from global pricing company S&P Global Platts, Kuwaiti crude oil producing has been relatively stable. "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.
"Extending the cuts for another nine months may not eliminate the glut in the market", said Sadad Al-Husseini, a former executive vice president of exploration and development at Saudi Arabian Oil Co., the state producer also known as Saudi Aramco. The deal prescribes the possibility of extension.
Brent crude oil gained 30 cents to touch $52.12 a barrel, while the USA light crude traded 25 cents higher at $49.10 against their last close, reported Reuters.
"At 96.17 million barrels per day, output stood 90,000 barrels per day below a year ago, even as non-OPEC returned to growth", said the report.
Brent futures were up 4 cents, or 0.1 percent, at $51.86 a barrel by 11:32 a.m. EDT.