Reduction in global oil production extends to 2019

Two of the world's leading oil producers stated that they will continue to reduce oil extraction by 2019. In a meeting of the G-20 summit in Buenos Aires, Argentina, Vladimir Putin, president of Russia, said his country and Saudi Arabia will retain the reduction pact next year.

The statement may be the footing necessary for the continuity of the agreement between the members of OPEC (Organization of Petroleum Exporting Countries). A new cartel meeting is scheduled to take place this week in Vienna, Austria. The cartel leaders gave "carte blanche" for continuity of production reduction, however, there will still be much discussion on the subject ahead, above all, regarding the size of the cut.

Saudi Arabia's leader believes agreement will be maintained between countries, as this would ensure the maintenance of market stability and the union not only of OPEC members, but also of other oil-producing countries in the world. Although the Russians and the Saudis are "talking" about extension of the cuts, neither of the two countries formally reported the volume of production proposed for 2019. We're waiting for more news.

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