OPEC extends term of Vienna agreement on production cut for 9 months

Baku. 25 May. REPORT.AZ/ OPEC has decided to extend the deal on production cut for 9 months during the summit in Vienna. Report informs citing the Bloomberg, the meeting was not yet over, but one of the summit participants, who wished to remain anonymous, reported on the final decision.

Notably, the current agreement expires on June 30.

Report informs, news was negatively perceived in the oil market. Now the cost of Brent oil fell by 1.3% - to 53.25 USD per barrel. Notably, although market participants expected an increase in reduction quotas, this issue did not become a topic of discussion at the summit.

Notably, on November 30, 2017, OPEC countries agreed to reduce production by 1.2 mln barrels - up to 32.5 mln barrels a day. On December 10, 11 non-OPEC countries came to an agreement to limit production by 558,000 barrels a day. The agreement is valid for 6 months, starting from January 1, 2017, there is also a probability of extending the agreement.

According to the Ministry of Energy of Azerbaijan, within the framework of the agreement between 11 countries on reducing production by 558,000 barrels a day, Azerbaijanhas fulfilledits obligations to OPEC, limiting production by 35,000 barrels a day.