At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million Barrels Per Day (BPD) until the end of the first quarter of 2018. The initial agreement would have expired in June this year.
Oil prices edged up on Friday, prices had plunged 5 percent following the announcement, only to marginally rally up on Friday. Gaining back some of those losses, Brent crude was at $51.83 per barrel at 0708 GMT, up 0.37 cents, or 0.7 percent, from their last close.
It would be called that Russia and Saudi agreed to extend production outputs by nine months last week. The duo are the world’s largest crude producers.
Analysts said that the OPEC-led production cuts would support a further rise in U.S. output, as OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and U.S. production and demand. Crude oil output from the US has been rising steadily from shale but with OPEC and allies potentially ramping up production in 2018 to regain lost market share, analyst already expects another price slump. Nigeria was exempted from the production cuts.
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