Russia and Saudi to extend oil output deal

Saudi energy minister Khalid A al-Falih says OPEC looks set to extend its oil output-cutting deal. (AAP)

OPEC looks set to extend its oil output-cutting deal by nine months, the Saudi energy minister.

Saudi Energy Minister Khalid al-Falih says that OPEC and its allies led by Russia will most likely extend their oil output-cutting deal by nine months and that no deeper reductions were needed.

"I think most likely a nine-month extension," Falih told reporters when asked about Saudi preferences.

Asked about a deeper cut, he said: "I don't think the market needs that."

"Demand is softening a little bit but I think it's still healthy," he said, adding that he expected the market to balance in the next six-to-nine months.

Russia has agreed with Saudi Arabia to extend the deal with OPEC, Russian President Vladimir Putin said earlier, as oil prices come under renewed pressure from rising US supplies and a slowing global economy.

Oil ministers from the Organisation of the Petroleum Exporting Countries meet on Monday in Vienna, followed by talks with non-OPEC oil producers on Tuesday.

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