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OPEC reportedly favors 9-month extension to output cut deal


2016Organization of Petroleum Exporting Countries (OPEC) President, Qatar's Minister of Energy Mohammed bin Saleh al-Sada speaks with Secretary General of OPEC Mohammed Sanusi Barkindo (R), during a news conference after an informal meeting between members of the organization in Algiers, Algeria September 28, 2016.

Ramzi Boudina | Reuters

2016Organization of Petroleum Exporting Countries (OPEC) President, Qatar’s Minister of Energy Mohammed bin Saleh al-Sada speaks with Secretary General of OPEC Mohammed Sanusi Barkindo (R), during a news conference after an informal meeting between members of the organization in Algiers, Algeria September 28, 2016.

OPEC members are reportedly forming a consensus around extending their production cutting deal with other crude exporters by nine months, a move that would help to put a floor under oil prices.

That would prolong the agreement among OPEC, Russia and other oil-producing nations to keep 1.8 million barrels a day off the market through the whole of next year. The exporters reached the deal last December and have already extended the one-year agreement by three months through March of 2018.

Sources told Reuters that OPEC may not agree to the extension at its next policy meeting in November. Instead, they may wait until early next year to make a final decision.

Oil prices strengthened following the report. International benchmark Brent crude futures were up 47 cents, or 08 percent, $58.36 per barrel by 9:15 a.m. ET. U.S. crude for November delivery was up 31 cents, or 0.6 percent, at $52.19.

This is a breaking news story. Please check back for updates.

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