Oil weakened after OPEC and its allies agreed to extend output cuts for another nine months, disappointing investors who had hoped for more. Futures dropped as much as 3.3 percent in New York. OPEC and non-OPEC producers have agreed to prolong their supply deal through March, Iran’s Minister of Petroleum Bijan Namdar Zanganeh said in Vienna. No additional producers have been added to the deal, said a delegate familiar with the matter, who asked not to be identified because the information isn’t public.
The curbs are working, and prolonging the deal through March will “do the trick,” Saudi Oil Minister Khalid Al-Falih said before the ministerial meeting in Vienna Thursday. The Organization of Petroleum Exporting Countries will empower its monitoring committee to recommend “further interventions” if needed, Al-Falih said. Libya and Nigeria, which have boosted output since the curbs started in January, will continue to be exempt from production cuts, he said. Read more