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OPEC commits to continuing production limits

Following the latest meeting of the Organisation of Petroleum Exporting Countries (OPEC) Saudi Arabia, its main producer has agreed to continue production limits for another nine months.

Output will be limited to 10 million barrels per day in order to counter the US shale boom which is currently disrupting the industry. Over the past four years, OPEC has cut its oil production in a commitment to reduce inventories around the world and drive up oil prices again. However, consultants Rystad Energy A/S predicts that the US shale boom could last well into the 2030’s, causing continuing problems for the OPEC countries.

During the meeting, OPEC also made its coalition with Russia and other countries more formal with the adoption of a charter to govern the relationship. Part of this charter included a target to reduce global stockpiles even further.