Saudi oil minister Khalid al-Falih has said an extension of the agreed Opec and non-Opec production cuts beyond the six-month time frame is unlikely.

“Based on my judgment today, it’s unlikely we will need to continue [the agreement]. Demand will pick up in the summer and we want to make sure the market is supplied well. We don’t want to create a shortage or squeeze,” he said to reporters on the sidelines of the World Future Energy Summit in Abu Dhabi on 16 January.

A good level of compliance would ensure the rebalancing of markets by the end of the first half of the year, Al-Falih added, pre-empting a need for extending the production cut.

Kuwait’s oil minister had earlier said a compliance of 60 per cent had already been achieved as Gulf producers Saudi Arabia, Kuwait, Qatar and non-Opec producer Oman had already cut output since the start of 2017. Russia, which had accepted a major share of the non-Opec 558,000 barrels a day (b/d) production cut, has already cut a third of its required 300,000-b/d reduction for January.