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Tajuk : REPORT: OPEC has agreed to extend production cuts for another 9 months
link : REPORT: OPEC has agreed to extend production cuts for another 9 months

REPORT: OPEC has agreed to extend production cuts for another 9 months

REUTERS/Carlos Garcia Rawlins

LONDON — OPEC has agreed to continue production cuts for a further nine months, according to reports late on Thursday morning.

Bloomberg reports that the cartel of major oil producers agreed to continue the cuts in a further effort to rebalance the oil market and address the global supply glut that has subdued prices, citing a delegate at OPEC’s meeting in Vienna who asked “not to be identified before an official announcement is made.”

The extension had been widely expected, after numerous major players said prior to Thursday’s meeting that they backed further cuts. 

Earlier in May, for example, both Saudi Arabia and Russia, who is not a member of OPEC but is seen as a critical part of any potential agreement, said they backed extending the production cuts until March 2018.

OPEC members will “discuss the extension with non-member producers later on Thursday,” Bloomberg says.

Oil is significantly lower on Thursday as traders await an official announcement, with both major benchmarks more than 2% lower. Both had been down more than 1% but dropped further after Bloomberg’s report. 

Here is how WTI crude, the US benchmark looks at around 11.40 a.m. BST (6.40 a.m. ET):

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