OPEC to extend oil production cut for nine months

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In an attempt to keep the price of oil above $50 a barrel, OPEC has extended the production cut for another nine months. The decision came at a meeting between officials of oil exporting countries in Vienna.

OPEC has committed to an extension of the limit in crude oil production to 1.8 barrels a day until March 2018 in the hope of achieving sustained price recovery.

Since mid-2014, when oil hit a high of over $100 a barrel, its value has plummeted to $47 as recently as early May. However, despite the 50% drop in three years, the measure to limit production has stabilized the market, temporarily at least.
Russia and Saudi Arabia, OPEC's de facto leader, had made the commitment last week to extend the cut in production, making a pledge to do "whatever it takes" to boost prices.

The price rise this year has spurred growth in the US shale industry, which is not participating in the output deal, thus slowing the market's rebalancing.