Saturday 19 August 2017

Opec and other oil-producing nations extend output cuts

General view of a meeting of oil ministers of the Opec countries at their headquarters in Vienna (AP)
General view of a meeting of oil ministers of the Opec countries at their headquarters in Vienna (AP)

Opec and other oil-producing nations have extended their output cuts for an additional nine months in an effort to shore up prices.

The decision, made at a high-level meeting of Opec and non-Opec ministers, means that the reductions of 1.8 million barrels a day agreed in November will stay in place until March.

However, any rise in prices may be modest and temporary.

The alliance between Opec and non-Opec countries faces competition from US shale producers.

Many have returned to the market since crude prices have risen from last year's lows to over 50 US dollars a barrel, and more are set to resume operations if crude prices go even higher.

This could increase supplies and push down prices.

Press Association

Editors Choice

Also in World News