OPEC and Russia are reportedly heading towards prolonging their oil supply cuts for the whole of 2018 but with an option to review the deal in June after Moscow expressed concerns the market could overheat. Laura Frykberg reports
It's said, there's no such thing as a quick fix. And OPEC appears to know it. A source has told Reuters that the organisation and Russia are likely extend oil output cuts again. When they meet on Thursday. (SOUNDBITE) (English) THINK MARKETS, CHIEF MARKET ANALYST, NAEEM ASLAM, SAYING: "Yes we do know that this production cut would be extended but until when? Would it be to mid 2018 over it would be the end of 2018. That's the primary factor that we will be looking at. That's the thing that would move the price of oil." The source says ministers are heading towards reducing supply by about 1.8 million barrels per day until the end of next year. But they'll be able to review that, in June. Confusion over the length of the extension has kept markets on their toes. Oil prices - recently around the $60 mark - dipped on the news. (SOUNDBITE) (English) THINK MARKETS, CHIEF MARKET ANALYST, NAEEM ASLAM, SAYING: "When are they going to scale that back? When are they going to put that quantity back on the market? How will the market react? that sort of certainty also needs to be addressed by the cartel." While it hasn't yet, non-Opec member Russia could be a clue. It's been reluctant to agree a lengthy extension, concerned it could lead the market to overheat. And boost the rouble, which would harm its crucial exports.