Oil prices is expected to rise further as the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC talks ended with an agreement to extend the production cut deal through the end of 2018.
The Saudi Arabia’s Energy Minister, Mr Khalid al-Falih made this known on Thursday in Vienna, in a press conference at the end of the third OPEC and non-OPEC Ministerial meeting.
al-Falih, who is also the President of OPEC said that the ministers had also agreed that Nigeria and Libya should not produce more than their current production levels in 2018.
He said that with the cut deal, the global oil market would continue to witness reduction of about 1.8 million barrels of oil supply daily.
There was a sharp global inventory build-up between mid-2014 and the start of 2016 as supply outpaced demand. By July 2016, the oil stock overhang reached 385 million barrels.
Oil prices to rise as OPEC extends cuts to Dec, 2018
