The world’s major oil producers have agreed to extend production cuts through to the end of 2018.
Members of the Organisation of Petroleum Exporting Countries (OPEC) and other major producers, including Russia, will extend the current deal of cutting supply by around 1.8 million barrels per day (bpd), which would otherwise have ended in March next year.
OPEC and Russia together produce more than 40% of global oil.
Khalid A. Al-Falih, Saudi Arabia’s Minister of Energy, Industry and Mineral Resources and President of the OPEC Conference said: “The agreement was designed to accelerate market rebalancing, hasten the drawdown of stock overhand and enhance market stability. The results of our joint efforts are evident – and the numbers speak for themselves.
“At the meeting of the OPEC Conference, we discussed the current oil market situation and the outlook for 2018 and deliberated on the extension of the current production agreement to continue the improving direction of the market.”
OPEC has also decided to cap the combined output of Nigeria and Libya at 2017 levels below 2.8 million bpd – both nations have been exempt from the cuts due to unrest and lower than normal production.