OPEC Secretary-General Mohammed Barkindo (R), Russian Energy Minister Alexander Novak (L), Saudi Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih (C), hold one during the 173rd Ordinary joint press conference from the Organization of the Petroleum Exporting Countries (OPEC) on 30 November 2017 in Vienna, Austria.
Omar Marques | Anadolu Agency | Getty Images
Russia and nine other non-OPEC producers agreed on an extension of supply by nine months on Tuesday to ratify a policy aimed at bolstering oil prices amid the weakening global economy.
It's less than 24 hours After the energy ministers of the world's most powerful oil producing countries reached an agreement to limit crude oil flow to the world market.
On Monday, OPEC reached an agreement to extend production cuts until March 2020. The Middle East dominated producer group was able to overcome its differences after five hours of negotiations in Vienna.
The Brent crude oil international reference stood at $ 64.82 on Tuesday lunchtime, down 0.4%, while the US West Texas Intermediate (WTI) was at $ 58.86, about 0.3% lower ,
The energy alliance between OPEC and non-OPEC partners, sometimes referred to as OPEC +, has reduced oil production since 201
The aim of this policy is to prevent prices from falling as the US increases in production – which has become the world's leading producer, ahead of Russia and Saudi Arabia. The cuts amount to about 1.2 million barrels per day.
Prior to the non-OPEC meeting on Tuesday, Saudi Energy Minister Khalid al-Falih said he was 100% confident in an OPEC + deal.
The US is neither a member of OPEC nor participates in the supply pact. Washington has demanded that Riyadh pump more oil to compensate for lower exports from Iran after it has imposed new sanctions on Tehran for its nuclear program. However, the US has also raised its oil production in recent years.
President Donald Trump is likely to be annoyed over a prolonged period of OPEC's supply cuts after repeatedly calling on Saudi Arabia to supply more oil and contribute to the reduction Crude oil prices rose more than 25% this year, after the White House tightened economic sanctions on OPEC members Iran and Venezuela and cut their exports.