×

UPDATE 1-OPEC ministers say oil market finding balance

(Updates with more details from oil ministers, quotes, background)

Nov 22 (Reuters) - Two OPEC members said the group's supply cuts are bringing world supply into balance, as ministers prepare for the cartel's meeting on Nov. 30, where an extension to their deal is anticipated.

Qatar oil minister Mohammed al-Sada said on Wednesday in Bolivia that the supply agreement between members of the Organization of Petroleum Exporting Countries and other producers should be extended further into 2018.

"In my view, an extension of the agreement will help us in stabilizing the market," al-Sada said on the sidelines of the Gas Exporting Countries Forum in Santa Cruz, Bolivia.

He said OPEC has been successful in draining world inventories to bring stocks closer to their five-year average, but the group needs more time to tighten supply further.

Similarly, Venezuela's oil minister Eulogio Del Pino said Wednesday that the oil market has finally found balance, as inventories are declining. He said the optimal price for crude is between $60 and $70 dollars a barrel to encourage further investment.

OPEC and non-OPEC members including Russia agreed late in 2016 to cut 1.8 million bpd in supply beginning this year. The agreement has been extended through March.

Global supply remained elevated through the early part of 2017, in part due to rising U.S. production, which hit a weekly record this week at more than 9.6 million barrels a day.

OPEC has grappled with increased shale output somewhat offsetting those efforts and taking away market share, and production in the United States is expected to keep rising as prices increase. (Reporting By Marianna Parraga and Alexandra Alper; Editing by Chizu Nomiyama and Cynthia Osterman)