Opec members to meet to discuss extending production cuts

The Organisation of the Petroleum Exporting Countries (Opec) and non-Opec nations will meet tomorrow to discuss a potential extension of the cartel's deal to cut production.

Ministers from Opec nations and other oil producers including Russia will meet in Vienna on Friday.

The Opec-led deal began in January and involved cutting output by 1.8m barrels per day to prop up low oil prices. The current deal, which was extended earlier this year, runs to the end of March 2018.

“An extension of the agreement or an increase in the cuts may be announced,” said Jeffrey Halley of futures brokerage Oanda.

Oil prices have jumped more than 15 per cent in the past three months with Brent crude trading above $56 a barrel in recent days, but prices are still half the level they were in mid-2014.

Opec's efforts have been offset by the shale boom in the US which has pushed production to record highs.

The cuts have also been hampered by increased output from Libya and Nigeria, which were exempt from the cuts.

Sources at a technical committee of Opec and non-Opec states that met earlier this week told Reuters compliance in August was 116 per cent of their pledged oil output cuts, up from 94 per cent in July.

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