OPEC reported that its plans for oil cuts were exceeded. According to the monthly report published by the Organization of the Petroleum Exporting Countries, in October oil production was reduced by 5% more, than it was planned.
Moreover, in OECD countries total crude oil inventories have declined by 83 million of barrels for the first time in three quarters. Last year it was only 35 million barrels./p>
OPEC plans to continue limiting oil production, extending the agreement until the end of 2018, Reuters reports. The organization expects that oil price won’t exceed $60 a barrel in 2018.
Russia, on the contrary, is going to increase oil output by 3.5-4 million tons, unless the agreement is extended.
Remember, OPEC, and other major non-OPEC producers agreed to cut oil output in 2016. The decision to extend the agreement until March 2018 was taken in May, 2017.