Monday 28 May 2018

Saudi Arabia, Russia agree oil output cut extension

BEIJING, May 15, 2017

Saudi Arabian and Russian energy ministers met on Monday in Beijing, China and jointly stated that a deal to cut crude supplies would be extended from the middle of this year until March 2018, a report said.

Opec and other producers led by Russia, pledged late last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017, reported CNBC, citing Reuters.

Despite this, crude prices had not moved much above $50 per barrel in the first months of 2017, as markets remain well supplied, leading to the extension.

Russia is the world's biggest oil producer, while Saudi Arabia is the biggest exporter. Together, they control around 20 million bpd in daily output, equivalent to a fifth of daily global consumption.

International Brent crude futures were at $51.63 per barrel at 0255 GMT, up 79 cents, or 1.6 percent, from their last close.

Tags: Oil | Opec |

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