OPEC+ Agree to 9 Month Extension to Production Cut Agreement

Russia and nine other non-OPEC producers agreed to a nine-month rollover of oil supply cuts on Tuesday, ratifying a policy designed to prop up crude prices amid a weakening global economy.

It comes less than 24 hours after energy ministers from the world’s most powerful oil-producing nations thrashed out a deal to restrict the amount of crude flowing into the global market.

West Texas Intermediate graph

OPEC reached a deal to extend production cuts until March 2020 on Monday. The Middle East-dominated producer group was able to overcome their differences after five hours of negotiating in Vienna.

In a statement released Tuesday, the energy alliance said it had made the decision to prolong production cuts “in view of the underlying large uncertainties and its potential implications on the global oil market.”

International benchmark Brent crude traded at $64.48 Tuesday afternoon, down around 0.8%, while U.S. West Texas Intermediate (WTI) stood at $58.55, almost 1% lower.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza