OPEC Extends Production Cuts For 9 Months, To Shore Up Oil Prices

OPEC and other allied major oil producers have agreed to extend crude oil production cuts for nine months, a move designed to keep oil prices from falling as U.S. production increases and concerns grow about global demand.

Crude oil prices rose after early reports of OPEC's decision. However, prices are not expected to rise dramatically, as countries that don't cooperate with OPEC — like the United States — have enough capacity to meet projected growth in demand.

OPEC's supply cuts, which Russia and several other nonmember countries are also observing, were put in place on a temporary basis at the beginning of 2017. They are credited with helping stop a dramatic multiyear slide in oil prices, and OPEC has opted to extend the cuts repeatedly since then.

Ahead of Monday's meeting, the organization had been widely expected to extend cuts by at least six months.

The deal technically needs to be approved by participating non-OPEC members in a meeting on Tuesday.

But Russia, by far the most significant non-OPEC partner, has already indicated it is willing to cooperate with production cuts.