Saudi Arabia and Russia Vow to Extend Production Cuts Into 2018

Global oil prices surged in overnight trading after oil ministers from Saudi Arabia and Russia said they would agree to extend OPEC's current production cuts.

Author:: TheStreet Staff
Publish date:: May 15, 2017 8:59 AM EDT

Global oil prices surged in overnight trading after oil ministers from Saudi Arabia and Russia said they would agree to extend OPEC's current production cuts for a further nine months in order to re-balance markets.

Speaking in Beijing earlier Monday, Saudi Arabia's Energy Minister, Khalid al-Falih and Russia's Alexander Novak said they wanted the current pact, which involves OPEC member and non-member states, including Russia, to continue holding back around 1.8 million barrels of oil from the market each day until the first quarter of 2018. The current agreement, established last November, is set to expire at the end of next month.

This article was written by a staff member of TheStreet.