Saudi Arabia and Russia Would Agree to Extend OPEC's Current Production Cuts
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.
"The two ministers agreed to do whatever it takes to achieve the desired goal of stabilizing the market and reducing commercial oil inventories to their 5-year average level," the ministers said in a joint statement said. "as well as to underscore the determination of oil producers to ensure market stability."
READ MORE: Global Oil Prices Surge as Saudi Arabia, Russia Vow to Extend Production Cuts Into 2018
This article was written by a staff member of TheStreet.
