OPEC, allies extend production cut through 2018
OPEC and non-OPEC countries led by Russia have voted unanimously to extend oil production cuts until the end of 2018 as part of their bid to clear a global glut of crude.
The participants at the 173rd conference of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna agreed Thursday to reduce output to 1.8 million barrels a day (bpd).
The decision is meant to rebalance the global market as uncertainties remain on how US shale production will affect prices.
The 24-nation alliance, however, hinted that it was ready to revisit the decision if oil price increases overheated the market.
During the meeting, Nigeria and Libya, which were excluded from the last round of production cuts because of political instability, promised not to increase production beyond 2017 levels.
Iranian Minister of Petroleum Bijan Zangeneh said OPEC decided to cap the combined output of Nigeria and Libya at 2017 levels below 2.8 million bpd.
The extension agreement represented a rare consensus between Saudi Arabia and Iran, whose diplomatic ties have plunged amid belligerent rhetoric by Saudi leaders.
The Saudis are pushing for continued cuts, but Iran wants greater market share after economic sanctions were lifted under its 2015 nuclear deal with world countries.
The consensus among OPEC and non-OPEC producers to rein in production has helped crude prices recoup about 20% of their values from a year ago.
After the decision was announced Thursday, the international price benchmark for Brent Crude jumped to $64 (€53.7) a barrel.
Also, UAE Minister of Energy Suhail Al Mazroui was named as OPEC's new provisional chair, taking over from Saudi Arabia's Khalid Al-Falih in the new year.
Press TV’s Vienna correspondent Homa Lezgee has more.
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