HOUSTON, March 7 Saudi Oil Minister Khalid
al-Falih said on Tuesday that oil market fundamentals are
improving as an agreement to curb supply by OPEC and non-OPEC
producers took effect.
But he said the group would not let rival producers take
advantage of the cuts to underwrite their own production
Saudi Arabia had cut beyond what it had pledged in the
agreement and brought the kingdom's output below 10 million
barrels per day, he said.
"We should not get ahead of the market," Falih told a group
of oil industry executives at the CERAWeek energy conference.
He said Saudi Arabia does not want OPEC to intervene in the
oil market to address long-term structural shifts, but would
support measures to address "short-term aberrations."
The production-reduction pact, which was joined by non-OPEC
countries including Russia and Kazakhstan, was intended to
reduce global output by about 1.8 million barrels per day, and
bring supplies closer to demand. The six-month agreement
originally took effect on Jan. 1.
(Reporting by Gary McWilliams; Editing by Marguerita Choy)