OPEC could prolong oil cuts to boost prices

OPEC could be prolonging oil production cuts that are set to expire in March 2018 “well into the second half of next year in effort to boost prices,”sources tell Bloomberg. “An extension of that duration would be needed under the worst-case scenario for the oil market that OPEC ministers are now contemplating,” the sources add, explaining that the actual duration of extension, which will be determined at OPEC and allies’ November meeting, will depend on a number of variables, including levels of global demand, level of compliance with promised production cuts, output recovery in Libya and Nigeria, and the US’ shale gas supply.