The Organization of the Petroleum Exporters (OPEC) and non-OPEC producers led by Russia on Thursday agreed to maintain the output cuts until the end of 2018, while also signalling a possible early exit from the deal if the market overheats.
Oil futures rose on Friday after OPEC and other major
producers agreed to extend their production curbs in a widely expected move aimed at ending a persistent glut in global supplies.
The Organization of the Petroleum Exporters (OPEC) and non-OPEC producers led by Russia on Thursday agreed to maintain the output cuts until the end of 2018, while also signalling a possible early exit from the deal if the market overheats.
U.S. crude futures were up 18 cents, or 0.3 percent, at $57.58 by 0324 GMT. Brent February crude futures rose 27 cents to $62.90.
The deal cuts 1.8 million barrels a day (bpd) from the market to tackle oversupply and bolster prices.
Saudi oil minister Khalid al-Falih said it was premature to talk about exiting the cuts at least for a couple of quarters as the world was entering a season of low winter demand. He said OPEC would examine progress at its next regular meeting in June.
OPEC and Russia together produce over 40 percent of global oil. Moscow's first real cooperation with OPEC, put together with the help of President Vladimir Putin, has been crucial in roughly halving an excess of global oil stocks since January.
Hurry up! SUBSCRIBE US >> Ripples Advisory
OPEC and Russia together produce over 40 percent of global oil. Moscow's first real cooperation with OPEC, put together with the help of President Vladimir Putin, has been crucial in roughly halving an excess of global oil stocks since January.
Hurry up! SUBSCRIBE US >> Ripples Advisory
No comments:
Post a Comment