OPEC+ meeting resulted in oil production cut extension for another nine months. The countries agreed to extend the deal until the end of 2018 without changing the conditions, reports Bloomberg.
As a result of the meeting, Nigeria agreed to limit oil production to 1.8 barrels per day, Libya – to 1 million bpd. Although Libya and Nigeria are among OPEC countries, they hadn't participated in the deal, boosting their oil production.
The agreement results will be analyzed in mid-2018. According to Khalid al-Falih, the Saudi oil minister, the countries are going to meet again in June and analyze, how they will have fulfilled their commitments in the first half of 2018, as well as the prospects for the third and fourth quarters of 2018.
The producers current deal to cut oil production came into force on January 1st, 2017. According to the agreement, OPEC countries cut their oil supply by 1.2 million bpd, non-OPEC countries – by 558,000 bpd. In May, 2017, the countries agreed to extend the deal through March, 2018, with the same conditions. It was necessary to continue limiting oil production, because the first target, reduction of global oil stock to average 5-year level, won’t have been reached by March, 2018.