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Saudi Arabia is ready for expansion of the OPEC+ production quota deal, aiming to stabilize the prices and cut the oversupply.

“The Kingdom reaffirms its readiness to extend the agreement to cut oil production, which proved its feasibility and usefulness by rebalancing demand and supply”, said the Crown Prince of Saudi Arabia and First Deputy Prime Minister, Mohammad Bin Salman. “The great demand for oil has absorbed the increase in shale oil production”, added he.

The Crown Prince of Saudi Arabia made similar comments in an interview published on Thursday about the king’s position to extend the oil deal and the state of the market.

“We will support everything that would lead to the stabilization of oil demand and supply”, said Mohammad Bin Salman, asked whether Saudi Arabia would support the extension of the agreement by the end of 2018. “I think the market has swallowed shale oil supplies and now we regain control”, added he.

The Saudi Prince’s comments have boosted oil prices, with Brent oil on Friday trading over 60 USD per barrel for the first time since July 2015.

Saudi Arabia is the largest producer in OPEC and is one of the initiators of the deal between OPEC countries and other oil producers, such as Russia, which restricts oil yields under a global oil pact. The aim of the Pact is to exhaust global reserves and to raise oil prices.

The Organization of Petroleum Exporting Countries plus Russia and nine other producers have cut oil production by about 1.8 million barrels per day since January. The OPEC+ production quota deal will continue until March 2018, but its extension is being considered. Crucial for this will be the forthcoming November 30 meeting to determine future oil policy.

