The current deal to support prices reduced production by 1.2 million barrels per day starting from January 1 for six months, and will now run into next year with the extension.
Coming on the heels of the US-China trade war, US President Donald Trump's threats against Mexico have intensified fears for the global economy, hurting oil prices and lowering overall growth forecasts.
The 14-member Organization of the Petroleum Exporting Countries pumped 30.17 million barrels per day (bpd) in May, the survey showed, down 60,000 bpd from April and the lowest OPEC total since 2015, Reuters survey shows.
“Gasoline prices are coming down. I called up OPEC, I said you’ve got to bring them down,” Trump told reporters.
United States President Donald Trump announced on his twitter account that Saudi Arabia and other OPEC member states have agreed on the US' demand to boost oil production.
Brent crude oil prices on Thursday hit their highest so far this year, pushed up by ongoing supply cuts led by OPEC and by US sanctions against Venezuela and Iran.
BP discovered two new oilfields in the Gulf of Mexico, identifying an additional billion barrels of oil in the region using new seismic technology.
Except for Qatar, the oil producing gulf countries are adamant on raising oil prices to fill budget deficits.
US lawmakers are considering a legislation that would pave the way for suing OPEC for manipulating oil prices. But changing market conditions could save the global oil cartel.
Organization of the Petroleum Exporting Countries (OPEC) said they would cut 800,000 barrels per day for six months from January, causing a sharp spike in oil prices.
Crude prices have been falling since October because major producers — including the US — are pumping oil at high rates and due to fears that weaker economic growth could dampen energy demand.
Doha wants to keep its role as the world’s leading LNG producer independent of the oil cartel’s politics, which has come to be influenced by non-member Washington.
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