The OPEC agreement was supported by 11 non-OPEC states, which joined the deal by promising to jointly reduce oil output by 558,000 barrels per day.
“Of course, we discussed these issues with our companies, prior to the meeting with my counterpart, the Saudi Arabian [energy] minister.
The OPEC has already implemented its commitment while non-cartel countries have implemented over half of the agreed upon cuts.
BEIJING (Sputnik) — According to the statement, Russian and Saudi Arabia will propose to extend the Vienna agreement on oil output cuts for nine months at the upcoming ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC), scheduled for May 24-25.
“We have come to the conclusion, that the agreement should be extended until the end of March of 2018,” Falih said at a press conference in Beijing following the meeting with Russian Energy Minister Alexander Novak.
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Saudis, Russia Favor Extending Oil Output Curbs by 9 Months
OPEC members agreed in November to cut 1.2 million barrels a day of oil production, and several non-members, including Russia, agreed in December to contribute a combined 600,000 barrels a day of output reductions.
Saudi Arabia and Russia said they favor extending oil-output cuts by global producers through the end of the first quarter of 2018 to shrink a market glut.
“Preliminary consultations show that everybody is committed” to the output agreement and no country is willing to quit, said Novak.
Global benchmark Brent crude added 1.7 percent to $51.69 on the ICE Futures Europe exchange.
Surging U.S. production has raised concern that the Organization of Petroleum Exporting Countries and its partners are failing to reduce an oversupply.
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Russia, Saudi Arabia Agree to Extend Oil Output Cuts Until March 2018
BEIJING (Reuters) – Saudi Arabia and Russia have agreed to extend crude oil output cuts until March 2018 in their latest effort to rebalance the global crude market, energy ministers for the two major oil producers said on Monday.
Russia is the world’s biggest oil producer, while Saudi Arabia is the biggest exporter.
Together, they control around 20 million bpd in daily output, equivalent to a fifth of daily global consumption.
(Reporting by Aizhu Chen in BEIJING; additional reporting by Henning Gloystein in SINGAPORE; Writing by Josephine Mason; Editing by Richard Pullin)
News of the joint deal sent crude prices up more than 1.5 percent in Asian trading.