Opec and allies agree to extend production curbs

The Organization of the Petroleum Exporting Countries and its allies are to extend their production curbs, as they look to shore up the price of oil.

The oil cartel and its allies, led by Russia, have been steadily reducing supply since 2017, as they battle falling crude prices caused primarily by a boom in the American shale oil market.

Such was the reversal of fortunes that America had overtaken Russia and Saudi Arabia, Opec’s de-facto leader, to become the world’s top producer.

The slowing global economy and stronger US dollar had further depressed the price of crude.

Last year, the alliance, knowns as Opec+, agreed to cut its combined production by 1.2m barrels per day, despite heavy criticism from US president Donald Trump, and following a meeting in Vienna on Tuesday, it was agreed that the curbs would continue.

In a statement, Opec said: “The meeting focused their deliberations on recent oil market developments and the immediate prospects. In the view of the underlying large uncertainties and its potential implications on the global oil market, the […] meeting hereby decided to extend the decision taken on voluntary production adjustments on 7 December 2018 […] for an additional period of nine months.”

The alliance is next scheduled to meet to discuss the oil market, including its levels of production, in December.