Production in the United States will prevent the effect of the extension of the Vienna agreement, according to the IMF

© AP Photo / PRNewsFoto/Redhawk Investment Group, LLC, ShutterstockДобыча oil in Texas, USA. Archival photoProduction in the United States will prevent the effect of the extension of the Vienna agreement, according to the IMF© AP Photo / PRNewsFoto/Redhawk Investment Group, LLC, Shutterstock

The positive effect on the price of oil on the world market from the extension of the agreement of OPEC and outside the cartel in the medium term will be constrained because of rising raw material extraction in the United States, stated at the briefing the representative of the International monetary Fund (IMF), Gerry rice.

«We expect that the decision of OPEC and non-OPEC, in particular Saudi Arabia and Russia, will help in the short term oil producers to stabilise oil prices. However, in the medium term, in connection with the increased production in the United States, this effect will be limited,» he said.

In more detail, the Fund will tell about it in the July review, he added.

OPEC agreed on 30 November last year in Vienna to reduce production by 1.2 million barrels per day from October levels to stabilize oil prices. Eleven non-OPEC countries, 10 Dec agreed to reduce its production a total of 558 thousand barrels, including RF — 300 thousand. The agreement was concluded for the first half of 2017 with possibility of extension.

The monitoring Committee of the Vienna agreement on the results of the Ministerial meeting on Wednesday recommended extending the agreement for another nine months, leaving unchanged the volume of reductions. At the same time, Russian energy Minister Alexander Novak reported discussing the option of extending the Vienna agreements for three months after a possible extension of up to April 1, 2018. On Thursday the Minister of oil of Kuwait Essam al-marzouk said that OPEC agrees to extend the Vienna agreement to reduce oil production for nine months.Production in the United States will prevent the effect of the extension of the Vienna agreement, according to the IMF© RIA Novosti, Informaticompletion: from exploration to the consumer

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