OPEC, Russia Agree to Extend Production Cuts Through 2018

Investing.com – OPEC announced it would extend cuts in oil output by nine months through 2018 on Thursday, as major oil produces expressed the need to ensure rebalancing in markets continue.

The announcement of a nine-month extension had a muted impact on oil prices as the extension was said to be mostly priced in, but some traders viewed the decision to cap production by both Nigeria and Libya as a bullish signal.

“To the market, we say there are no surprises to be expected from Libya and Nigeria,” Saudi Energy Minister and current OPEC president Khalid al-Falih.

On the New York Mercantile Exchange for January delivery fell 0.44% to $57.05 a barrel, while on London’s Intercontinental Exchange, fell 0.38% to trade at $62.27 a barrel.

The deal comes as concerns mount over rising output from non-participating countries, including the U.S., where producers have ramped up crude oil production more than 15% to 9.66 million barrels per day (bpd) since mid-2016, not far from top producers Russia and Saudi Arabia.

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