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Opec extends oil production cuts | Opec extends oil production cuts |
(35 minutes later) | |
Oil-producing nations belonging to Opec have agreed to extend production cuts for a further nine months, reports say. | Oil-producing nations belonging to Opec have agreed to extend production cuts for a further nine months, reports say. |
Energy ministers have been meeting in Vienna to discuss extending the cut, which was due to expire next month. | Energy ministers have been meeting in Vienna to discuss extending the cut, which was due to expire next month. |
Brent crude dipped before regaining some ground to $53.77 a barrel following reports of the extension until March 2018. | Brent crude dipped before regaining some ground to $53.77 a barrel following reports of the extension until March 2018. |
Non-Opec members, led by Russia, have also agreed to another nine-month production cut, according to reports. | |
Kuwaiti oil minister Essam al-Marzouq has reportedly confirmed Opec's agreement to extend the output curbs. | Kuwaiti oil minister Essam al-Marzouq has reportedly confirmed Opec's agreement to extend the output curbs. |
Opec countries and 11 other oil-producing nations, including Russia, first agreed to reduce production last December in an effort to boost flagging prices. | Opec countries and 11 other oil-producing nations, including Russia, first agreed to reduce production last December in an effort to boost flagging prices. |
The reduction was almost 1.8 million barrels per day - equivalent to about 2% of global oil production. | The reduction was almost 1.8 million barrels per day - equivalent to about 2% of global oil production. |
Neil Wilson at ETX Capital said Opec members "bottled it", adding: "A nine-month extension just isn't enough to really lift oil prices as we'll continue to see US shale fill the gap. Having said they'd do whatever it takes, Opec is looking a bit toothless now. | |
"Faced with kind of glut and the scale of the market, the cartel would be better off cutting a lot deeper but for less time than trying to prolong fairly timid cuts." | |
Opec sources have said the meeting will highlight a need for long-term cooperation with non-Opec producers. | Opec sources have said the meeting will highlight a need for long-term cooperation with non-Opec producers. |
Gary Ross, head of global oil at PIRA Energy, part of S&P Global Platts, said: "Russia has an upcoming election and Saudis have the Aramco share listing next year, so they will indeed do whatever it takes to support oil prices." |