Russia, Saudi Arabia back extension of oil output cuts

May 15, 2017 - 5:09 am

MOSCOW (AP) — Russia and Saudi Arabia want to extend oil production cuts through the first quarter of 2018, in a move the two major producers say would stabilize the market.

Oil prices rose on the announcement that the countries want to extend the deal, which encompasses both nations in the Organization of the Petroleum Exporting Countries and some non-OPEC countries like Russia.

The Russian Energy Ministry says extending the cuts through March 31, 2018, would show "producers' determination to ensure stability, predictability and incremental development of the market."

In late November, OPEC agreed to cut production by 1.2 million barrels a day, the first such reduction agreement since 2008. The following month, 11 non-OPEC oil-producing countries pledged to cut another 558,000 barrels a day, reaching an overall reduction of 1.8 million.

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