Major oil producers agree to extend output cuts by nine months

VIENNA: Non-Opec oil producers led by Russia agreed yesterday to join Opec (Organisation of Petroleum Exporting Countries) in extending production cuts for nine months until March 2018, delegates said.
The combined cap on oil output for Opec and non-members was agreed at around 1.8 million barrels per day.
The next Opec and non-Opec meeting is scheduled for Nov 30, delegates said.
Earlier yesterday, Opec decided to extend cuts in oil output to March 2018, as the producer group battles a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.
The production cuts have helped push oil back above US$50 (RM214) a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.
The nine-month extension of the cuts – from output levels in October 2016 – was largely expected by the market. By 1430 GMT, Brent crude was 0.7% down at US$53.50 a barrel, having pared earlier losses after Opec said it would not deepen the cuts or extend them by as long as 12 months. – Reuters