The Latest: OPEC backs 9-month extension for production cuts
VIENNA (AP) — The Latest on the OPEC meeting (all times local): 10 p.m. The OPEC oil cartel has decided to maintain its production cuts of 1.2 million barrels a day for another nine months. The decision at OPEC headquarters in Vienna came as the oil producing nations face potentially weaker demand from a slowing global economy.
The decision among OPEC's members will now be taken up Tuesday in a meeting with non-OPEC members such as Russia. Tensions between the U.S. and Iran and attacks on tankers near the Strait of Hormuz have pushed up oil prices in recent days. Over the longer term however, demand could weaken according to the International Energy Agency, which cut its demand estimate earlier this month.
The oil producers' cartel, OPEC, is considering a six- to nine-month extension of its current deal to cut production, facing a weaker demand outlook due to slowing global growth.
Member representatives are meeting Monday at OPEC headquarters in Vienna.
The head of Nigeria's delegation, Folasade Yemi-Esan, said Monday that her country "strongly endorsed" an extension of the deal for nine months, saying that would "offer greater certainty to the market." The current deal reduced production by 1.2 million barrels per day starting from Jan. 1.
Tensions between the U.S. and Iran and attacks on tankers near the Strait of Hormuz have sent oil prices higher in recent days. Over the longer term, demand could weaken according to the International Energy Agency, which cut its demand estimate earlier this month.