OPEC extends oil output cut by nine monthsStaff Writer | May 25, 2017
OPEC decided to extend cuts in oil output by nine months to March 2018, an OPEC delegate said.
Oil exploration Above $50 a barrel
OPEC's cuts have helped push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.
Oil's earlier price decline, which started in 2014, forced Russia and Saudi Arabia to tighten their belts and led to unrest in some producing countries including Venezuela and Nigeria.
The price rise this year has spurred growth in the U.S. shale industry, which is not participating in the output deal, thus slowing the market's rebalancing with global crude stocks still near record highs. ■