Russia and nine other non-OPEC producers agreed to a nine-month rollover of supply cuts today (July 2), ratifying a policy designed to prop up oil prices amid a weakening global economy.
CNBC reported that it comes less than 24 hours after energy ministers from the world’s most powerful oil-producing nations thrashed out a deal to restrict the amount of crude flowing into the global market.
OPEC reached a deal to extend production cuts until March 2020 on Monday. The Middle East-dominated producer group was able to overcome their differences after five hours of negotiating in Vienna.
The energy alliance between OPEC and non-OPEC partners, sometimes referred to as OPEC+, has been reducing oil output since 2017.
The policy is designed to prevent prices from sliding amid soaring production from the U.S., which has become the world’s top producer ahead of Russia and Saudi Arabia. The cuts are running at a volume of about 1.2 million barrels per day.
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