The Organisation of Petroleum Exporting Countries (OPEC) says it has agreed to extend oil production cuts by nine months.
The decision by the oil cartel however failed to impress the global crude oil market, as Brent crude fell by almost $3 to hit $51.78 at the end of the deal, while US shale fell below $50 per barrel.
OPEC reached this decision at its 172nd meeting in Vienna on Thursday. Speaking at the press conference, Mohammed Barkindo, OPEC secretary-general, said US shale producers were invited to the meeting.
According to the OPEC secretariat, member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan, recognised the need for continuing cooperation among oil exporting countries in order to achieve a lasting stability in the oil market.
In this regard, the aforementioned non-OPEC countries decided to extend their production adjustments, which originally started January 1, 2017, for a further period of nine months, beginning July 1, 2017.
The 14 OPEC Member Countries and 10 participating non-OPEC producing countries underscored the importance of continuing efforts to help stabilize the oil market, in the interests of all oil producers and consumers.
The meeting participants reaffirmed their commitment, individually and collectively, to the decision to extend the voluntary production adjustments for a further nine-month period.
They expressed its deep appreciation to the commitment and valued contribution of the Joint Ministerial Monitoring Committee (JMMC) and the Joint Technical Committee (JTC) that have provided the transparency required in implementing the decisions taken last year in a timely and equitable manner.
Egypt is expected to join in the production cut.
The meeting was attended by members and non-members of OPEC.