Saudi crown prince favors extending OPEC production limits

Saudi Arabia’s crown prince says his country supports extending an agreement by major oil producers to limit output beyond next March.

Crown Prince Mohammed bin Salman said Saturday that the OPEC-led agreement is necessary to balance supply with demand.

Saudi Arabia is the world’s largest producer and the most influential member of OPEC. The agreement, which kicked in at the start of 2017, also included Russia and other non-OPEC countries.

The Organization of the Petroleum Exporting Countries is expected to take up the agreement at its next meeting on Nov. 30.

In a statement, Prince Mohammed said that Saudi Arabia “affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand.”

The effect of the production limits approved by major oil countries has been muted by rising output from U.S. shale-oil producers. The prince said that high demand for oil has absorbed the increased supply from shale oil.