Oil Prices were up by almost 1.5 percent early in today’s session after energy minister from Russia and Saudi Arabia said that an OPEC-led crude production cut would be extended from the middle of this year until March of next year.
Saudi Arabian Minister, Khalid al-Falih and Russian Representative Alexander Novak met on Monday in Beijing and both come to an agreement that a deal to cut supplies in order to push the market which would be extended until next year.
The OPEC members and other producers led by Russia, pledged late last year to cut output by almost 1.8 million barrels per day during the first half of 2017. With that into consideration, crude prices had not moved much above $50 per barrel in the first few months of 2017, because the market were still well supplied that has lead OPEC members to agree to an extension.
Russia the biggest oil provider of the world, and Saudi Arabia is the biggest exporter when combined, these two control around 20 million barrels per day in daily output, which is equal to a fifth of daily global consumption.
The international Brent crude futures were being traded at $51.63 per barrel and up by 79 cents or equal to a 1.6 percent increase from their last close. The U.S. West Texas Intermediate crude futures were trading at $48.61 per barrel which was up by 77 cents that is equivalent to 1.6 percent.