The move was partly matched by non-cartel producers led by Russian Federation.
Although it has the backing of Saudi Arabia and Russian Federation, the world's top two crude producers, the extension will need to be formally adopted by OPEC at the its meeting next week in Vienna, and then by non-OPEC producers as well.
"At 96.17 million barrels per day, output stood 90,000 barrels per day below a year ago, even as non-OPEC returned to growth", said the report. Their regimes have been forced to adapt to today's market environment, but that transition has been an exceedingly painful one, coming after years of $100+ per barrel oil.
Mr Falih added: "We've come to the conclusion that the agreement needs to be extended". U.S. West Texas Intermediate (WTI) crude futures were at $49.10, up 25 cents, or 0.51 percent from their last settlement. There is trend observed in the stock market these days by the analyst. Get our markets daily newsletter.
The ministers said they hoped other producers would join the supply cut, which will initially be on the same volume terms as before.
"That is the most important condition for stability", he said at a separate press conference in Beijing. In line with stronger recent performance from the U.S. shale sector we have revised upwards our expectation throughout 2017 and we now expect total United States crude production to exit the year 790,000 barrels a day higher than at the end of 2016, which is an upward revision of 100,000 barrels a day since last month's Report.
The trading of oil would fluctuate between $40 per barrel to $55 per barrel while the cost of production is expected to remain at the center for $50 per barrel. That would be crude's sixth straight weekly decline after hitting a record high at the end of March.
"We are of the camp that the extension cuts might not be enough - they might need to extend the cuts and to increase them to stabilize this market", said Oliver Sloup, director of managed futures at iitrader.com. Shares in Tullow Oil climbed by over 3.3pc to 201.63p while Cairn Energy rose 2.75pc to 201.63p. But the move to prolong the deal until March of next year surprised market analysts... "We have, before coming to this announcement [yesterday], reached out to many of our colleagues within and outside Opec and I think there is general consensus that this is the right approach".
Meanwhile, two OPEC members that were exempt from reducing output because of internal strife are boosting supplies.
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