Investing.com - Saudi Arabia could face a dilemma over the time frame for agreed output cuts.
OPEC members agreed to cut output by some 1.2 million barrels in the first half of this year.
OPEC's monthly report Monday showed the cartel's production fell by 890,000 barrels a day to 32.14 million.
But the report also warned that non-OPEC output is expected to rise this year on an increase in U.S. drilling activity.
The output cut agreement marked a shift in Saudi policy away from increasing market share.
But enhanced technology has made North American shale producers more efficient at lower price levels.
Saudi Arabia Energy Minister Khalid Al-Falih expects the oil market to re-balance in the first half.
He has said the time frame for the agreed cuts would only be extended if necessary.
The question is whether Saudi has targeted a price for oil that adequately shores up its financial situation.
But an extension of the time frame could be counterproductive by ushering in even more shale production.