OPEC Ministers agreed on the prolongation of the agreement on the limitation of oil production for nine months, until March 2018. The country is not from OPEC, is also involved in the agreement (including Russia) will support this decision
That the OPEC Ministers agreed to extend the production cuts until March 2018, according to Reuters and the Financial Times, citing participants of the meeting in Vienna. Meeting behind closed doors is still ongoing, the decision will be announced later.
The extension of the agreement expected, it was taken into account in oil prices, but there were questions about the renewal terms (nine months or a year), the details of commitments for individual countries (Libya, Nigeria), the possibility of joining the deal in other countries like Turkmenistan or Egypt.
As expected, the countries not included in OPEC, but participating in the existing agreement, will join in the decision to extend reduced the quota of oil production. Support for this initiative was expressed by the Minister of energy of Russia Alexander Novak and Minister of Finance Anton Siluanov.
At the end of last year OPEC countries and 11 countries of the cartel, including Russia, agreed to reduce the average daily oil production of 1.8 million barrels. relative to the level of October 2016. The agreement came into force on 1 January 2017, for a period of six months.
OPEC has reduced its overall quota of oil production by 1.2 million barrels. a day. Countries non-OPEC (Russia, Mexico, Azerbaijan, etc.) pledged to reduce production by 558 thousand barrels. a day, of which the share of Russia had 300 thousand By the end of April, Russia reached the required reduction.