OPEC and Russia agree to extend oil production cut

Russia and oil cartel OPEC agree to extend their oil production cut to December 2018, amid fears that the US output will spike amid rising prices.

MENA

2 min read

The New Arab

01 December, 2017

OPEC - Russia and OPEC cut oil production

OPEC and non-OPEC oil producer Russia agreed on Thursday to extend production cuts for the commodity until the end of 2018, following several hours of deliberation in Vienna.

The group of oil producing nations said that the new deal will last from January to December 2018.

While the move was widely expected, energy ministers from Saudi Arabia and the United Arab Emirates had earlier this week dodged questions about whether the extension would be agreed.

OPEC, a cartel of 14-oil producing states, agreed last winter to slash oil production by 1.8 million barrels per day as part of an effort to address a global glut in crude oil that was threatening prices.

The initial deal was set to expire in March next year, however has already been extended once before.

The new extension will be reviewed at OPEC's next meeting in June.

It has also been reported that OPEC members Nigeria and Libya, who are exempt from the deal, have agreed not to exceed 2017 production levels.

Together, OPEC and Russia account for over 40 percent of the world's oil roduction.

The United States, however, has not participated in the production cuts. This has caused much concern in Russia that US crude production could spike as prices climb above $60 per barrel.