OPEC and non-member oil producers have extend output cuts to help clear a global stocks overhang and prop up crude prices. Laura Frykberg reports
When a club has this many members, getting consensus isn't always easy. But just an hour into this OPEC meeting.. And a delegate has told Reuters they HAVE. And that the organisation will extend its reduced oil output by another nine months. (SOUNDBITE) (English) SAUDI ENERGY MINISTER, KHALID AL-FALIH SAYING: The market is now well on its way for rebalancing. OPEC's previous cuts have helped push oil back above $50 a barrel this year. Something some countries need more than others. (SOUNDBITE) (English) THOMAS STREATER, HEAD OF RESEARCH, MB COMMODITIES CAPITAL "Saudi needs a higher oil price because they want to maximise the valuation of the Aramco IPO next year." But news this week that the U.S. may sell half its reserves... As it continues to produce large quantities of shale, may undermine their efforts. Although some say that's not giving OPEC nations enough credit. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "People I have spoken to in the shale market and shale operation tend to suggest that while shale is obviously still a thorn in OPEC's side that the production side of it is maybe getting towards some level of peak. So maybe OPEC has a fairly good read on what it can do with the shale output at the moment." Markets had banked on the extension being more than nine months... So despite early gains in the oil price. It contracted slightly on the news, with dip in Brent Crude.