OPEC extends production cuts for another nine months

HOUSTON (ICIS)–OPEC on Monday extended production cuts for another nine months, in a bid to bolster oil prices as the cartel faces a weakening outlook for global demand.

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The extension of production cuts runs from 1 July 2019 to 31 March 2020, OPEC said in a release.

OPEC acknowledged the crucial role played by participating non-OPEC allies such as Russia, and suggested that the non-member countries could ratify the cartel’s decision at a meeting on Tuesday. Russian President Vladimir Putin has already said he backs an extension.

The US is not part of the agreement and has so far boosted shale oil output with favourable oil prices. US President Donald Trump has often called for a reduction in production from OPEC+, despite US production hitting record global highs in 2019 that surpass 12.1m bbl/day.

Image above shows a pump jack. Photo by Shutterstock