By Alex Lawler and Rania El Gamal VIENNA (Reuters) - An OPEC panel reviewing scenarios for the oil producer group's meeting next week is looking at the option of deepening and extending a deal to reduce crude output, OPEC sources said on Friday, in an attempt to drain inventories and support prices. Saudi Arabia and non-OPEC Russia, the world's top two oil producers, have agreed on the need to prolong the current cuts until March 2018, although Saudi Energy Minister Khalid al-Falih said extended curbs would be on the same terms. Among the scenarios being considered by the OPEC panel were a six- or nine-month extension with a possible deeper cut, sources said.
Philippine President Rodrigo Duterte said Friday China's leaders told him they were prepared to go to war over competing claims in the South China Sea. Duterte, who met with Chinese President Xi Jinping and Premier Li Keqiang in Beijing this week, said he was making the threat public in response to domestic criticism he was being too weak with China over the dispute. China claims most of the sea, a key waterway for global shipping, and has reclaimed disputed reefs and installed military facilities on them.
The Japanese government on Friday approved a one-off bill allowing ageing Emperor Akihito to step down from the Chrysanthemum Throne, in the first such abdication in two centuries. The bill is likely to receive swift final approval in parliament, Chief Cabinet Secretary Yoshihide Suga said after Prime Minister Shinzo Abe's cabinet signed off on the legislation. Abdication must take place within three years of the bill becoming law.

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