Saudi Arabia Likely To Extend Output Cut Into October: Analysts

Saudi Arabia will likely roll over a voluntary oil cut of 1mbpd into October, amid uncertainty about supplies and as the kingdom targets drawing down global inventories further, five analysts said.

• Earlier this month, Saudi Arabia extended the voluntary cut into September, and said cuts cut be further extended or deepened.
• "We think Saudi Arabia will extend the cut in full at least through October," Richard Bronze, analyst at consultancy Energy Aspects said.
• "The kingdom is adopting a cautious approach after the weakness in oil markets over the first half of the year and will want to see global inventories significantly decline before starting to unwind the additional voluntary cuts," he added.
• China has also been drawing on record inventories amassed earlier this year as higher oil prices drive refiners in the world's biggest oil importer to scale back purchases, traders and analysts said.
• Two other analysts, brokerage PVM Oil's John Evans and Saxo Bank's Ole Hansen, said a possible resumption of oil production from Iraq's Kurdistan region may prompt Riyadh to withhold additional supplies to the market for now.