OPEC extends production cuts

Vienna, MAY 26: A trouble for OPEC countries. The countries have decided to extend the production cuts for 9 months. The cuts were initiated in last December by world’s largest crude producing nations.

The decision was announced on Thursday in Vienna, the headquarters of the Organization of the Petroleum Exporting Countries (OPEC).

They have taken this decision because of the excess supply of oil. The countries have issued a statement that the extension begins from 1 July. They have decided to reduce the production by of 1.8 million B/D, or 2% of global production.

Sources say that these countries have taken this decision because of the increase in production of USA shale gas and oil which is cheap compared to global oil prices.

Finally, customers are happy because this move would reduce the global fuel prices.