NEW YORK (Reuters) - A deal to cut oil output by the Organization of the Petroleum Exporting Countries could be extended if inventories remain above average, Saudi Energy Minister Khalid al-Falih said in an interview with Bloomberg on Thursday.
OPEC and some non-OPEC producers agreed to cut production from Jan. 1 to reduce record stocks of global crude oil, but the deal has been dampened by data showing persistently rising U.S. stockpiles. [EIA/S]
The U.S.-Saudi relationship is in "perfect" alignment and both countries need a stable oil price, Bloomberg cited Falih as saying in headlines, copies of which Reuters saw.
Saudi will review the oil strategy in mid-second quarter and will do what it takes to make the industry healthy, the report said.
Oil prices <CLc1> <LCOc1> rose after the report before giving up the gains quickly to trade largely unchanged.
Reuters reported in February that OPEC could extend its oil supply-reduction pact with non-members or even apply deeper cuts from July if global crude inventories fail to drop to a targeted level.
(Reporting by Devika Krishna Kumar in New York; Editing by Leslie Adler)