OPEC & non-OPEC agree to extend oil output cuts www3.nhk.or.jp
The Organization of the Petroleum Exporting Countries and major non-OPEC oil producing nations have agreed to extend their cuts in crude oil output until March of next year.
OPEC held a meeting at its headquarters in Vienna, Austria, on Thursday. Participants agreed on the 9-month extension, citing the need to ease the glut of supply. The cuts originally were to finish at the end of June.
At a separate meeting with OPEC members, leading non-OPEC countries, including Russia, agreed on the extension.
The agreement is apparently in line with a similar deal struck between Saudi Arabia and Russia on May 15th.
OPEC and non-OPEC nations implemented the reductions in January to raise crude prices. But a rise in oil prices has been capped by expansion of shale oil production in the US.
Observers say the same cycle may occur again, clouding the prospect for higher crude prices.
Published Date:2017-05-26