OPEC, partners agree oil cut extension to end of 2018

OPEC and its partners agreed on Thursday to extend oil output cuts of about 1.8 million barrels per day (bpd) until the end of 2018.

The decision came within analysts' expectation though Russia, ahead of the meeting, expressed concern over the extension of the output cut.

In 2016, the OPEC countries reached an agreement in Vienna to reduce daily oil production during the first half of 2017 to boost global oil prices. The agreement was also supported by 11 non-OPEC states. In late May, the parties to the deal agreed to extend the accord until the end of March 2018.

Russian energy minister Alexander Novak said: "To reach our goals, to rebalance the market, we must continue to act in a coordinated fashion, to act jointly, which would take us further in 2018."

Khalid Al-Falih, Saudi Arabian Minister of Energy, Industry and Mineral Resources said his country was united shoulder to shoulder with Russia.

Russia and OPEC countries have a common goal regarding the oil market balance, Novak said.

The 24 oil producers' efforts to reduce the oil surplus are paying off. They've drained excess inventories in developed nations this year by 183 million barrels, or more than half of the glut.

(CGTN)