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The extended deal was labeled an “amendment” to the existing deal, and a “roll-over” to 31 December 2018 by Saudi Energy Minister Khalid al-Falih after the meeting.
Other than the end-date, previously March 2018, the details of the agreement remain the same. Opec is to produce at a level 1.2mn b/d below its baseline agreed on in November 2016, and the non-Opec participants will contribute a further 550,000 b/d.
Although the deal runs to end-2018, it will be reviewed when the participants gather in Vienna at the next Opec ministerial meeting in June 2018. At that point “further adjustment actions will be considered based on prevailing market conditions and the progress achieved towards re-balancing of the oil market at that time.” In effect therefore, the agreement is a three-month extension dressed in the market-reassuring garb of a nine-month extension.
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