International benchmark Brent crude oil futures dropped as low as $45.4 per barrel on Tuesday – their lowest level since November 2016 – and dropped to similar levels early on Wednesday before recovering slightly. The United States benchmark West Texas Intermediate dropped to $42.8/bbl on Tuesday and was trading at around $43/bbl at the time of publication.
OPEC members and a group of 11 non-OPEC producers led by Russia agreed on 25 May to extend their 1.8 million barrels per day (MMb/d) output cut for a further nine months. The original deal was for cuts of 1.2 MMb/d by OPEC members and nearly 600,000 b/d by non-OPEC countries to be made during the first six months of 2017. This was initially in effect until the end of June 2017, but now the cuts have been extended until the end of March 2018.
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