VIENNA, Nov 30 – OPEC agreed on Thursday to extend oil production cuts until the end of 2018, a delegate said as the group strives to finish clearing a global glut of crude and avoid another price crash.
The agreement in principle was reached after several hours of debate at OPEC headquarters in Vienna. The delegate said OPEC was still discussing whether to cap the oil output of Libya, which had been exempted from production cuts due to unrest.
The 14-member Organization of the Petroleum Exporting Countries had yet to meet non-OPEC producers led by Russia later on Thursday to approve the extension of joint production cuts.
Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn’t flip into a deficit too soon.
With oil prices rising above $60, Russia has expressed concerns that such an extension could prompt a spike in crude production in the United States, which is not participating in the deal.