LOC19:18
16:18 GMT
VIENNA, May 25 (KUNA) -- Ministers from OPEC oil-exporting nations agreed on Thursday to protract a deal to limit crude oil output for an additional nine months, pushing the timeframe to a March 2018 deadline.
The decision to slash oil production by one million and 800 barrels per day (bpd) will be implemented by OPEC and non-members alike, including Russia, the world's biggest oil producer, the ministers announced.
Moreover, OPEC's decision to slash oil output is seen as crucial to boost oil prices, as the price of the crude has reached around USD 52 per barrel.
On a related note, Russian Minister of Energy Alexander Novak said that OPEC's and non-OPEC's collective efforts to adhere to the deal opened a door for cooperation, which in turn, will restore stability to the oil market.
He pointed out that the deal could not have been feasible but for the support of leaders of OPEC oil-producing nations.
Today's meeting came the heels of a session by the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC), which called for extending the agreement of cutting oil output for another nine months.
Kuwait's Minister of Oil and Minister of Electricity and Water Essam Al-Marzouq said the commission made progress regarding global oil markets.
Furthermore, the technical committee stressed that it, supported by OPEC secretary, will continue to provide its monthly evaluation to concerned bodies.
The JMMC was founded following OPEC's 171st Ministerial Conference Decision of November 30, 2016 and the subsequent Declaration of Cooperation made at the joint OPEC and non-OPEC ministerial meeting held on December 10, 2016.
During the December meeting, 11 non-OPEC oil producers cooperated with the 13 OPEC members in a concerted effort to accelerate the rebalancing of the global oil market through an adjustment in combined production of 1.8 million barrels per day.
The declaration, which came into effect on January 1, 2017, was for six months. (end)
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