Opec and non-Opec oil producers agreed to extend output cuts for an additional nine months at an Opec meeting in Vienna, Austria yesterday (May 25), a report said.

The production cuts of 1.8 million barrels a day, first agreed on in November last year, will now extend to March 2018, added the CNBC report.

The Opec-led output cuts are targeted at rebalancing the global overhang in the oil markets which saw oil prices fall by more than half in recent years.

Oil prices fell by more than four per cent on Friday following the news as some investors had been hoping for deeper production cuts. US crude had traded above the $50 mark for most of the week in anticipation of the Opec meeting, the report said.