The Organization of the Petroleum Exporting Countries (OPEC) and its partners have agreed to extend the output cut till the end of 2018, nine months longer than the previous agreement.
Twenty-four countries decided to maintain production cut of about 1.8 million barrels per day (bpd) until December 31, 2018, said Khalid Al-Falih, Saudi Arabian Minister of Energy, Industry and Mineral Resources, on Thursday.
The decision came within analysts' expectation though Russia, ahead of the meeting, expressed concern over the extension of the output cut.
In 2016, the OPEC countries reached an agreement in Vienna to reduce daily oil production during the first half of 2017 to boost global oil prices. The agreement was also supported by 11 non-OPEC states. In late May, the parties to the deal agreed to extend the accord until the end of March 2018.
Al-Falih also said his country was united shoulder to shoulder with Russia.
Russian Energy Minister Alexander Novak said, "To reach our goals, to rebalance the market, we must continue to act in a coordinated fashion, to act jointly, which would take us further in 2018."
Russia and OPEC countries have common goal in terms of the oil market balance, Novak said.
Oil prices rebounded after the OPEC's decision.
The West Texas Intermediate for January delivery on Thursday increased $0.10 to settle at $57.40 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery added $0.46 to close at $63.57 a barrel on the London ICE Futures Exchange.
