2017.11.3021:17:00UTC+00OPEC Strikes Deal with Russia to Extend Production Cuts through 2018

After hours of talks in Vienna, OPEC and non-OPEC member Russia reached an agreement on Thursday to extend production cuts until the end of 2018 that looks to shrink stockpiles and keep prices above $60 per barrel.

Saudi Arabia and Russia have together lead an initiative by 24 nations that are both outside and inside the OPEC cartel to limit global production by 1.8 million barrels next year. If the deal was not struck on Thursday, the deal was set to end in March.

The deal was brokered last winter by the 14-member OPEC cartel, Russia, and nine other global producers.

Instead of extended the deal by nine months, the group said it was adopting a new deal that will last from January to December of 2018.

Ahead of the meeting, Russia, the biggest producer outside the oil cartel, has been at odds with other members over how long they will prolong the agreement, which first came into effect in January. However, Thursday's agreement was a testament that they have reached a consensus and settled their differences.

The deal is likely to be reviewed in the middle of next year when OPEC is set to meet.