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OPEC, Russia, Others To Consider Extending Oil Supply Cuts

Russian Energy Minister Aleksandr Novak (left) and Saudi Arabia's Khalid al-Falih

OPEC and several nonmember oil producers meeting in Kuwait say they have agreed to review whether an agreement to cut supplies should be extended by six months.

A statement on March 26 said a joint committee had requested the OPEC Secretariat to review market conditions and report in April whether the voluntary production cuts should be extended.

OPEC and 11 other leading producers, including Russia, in December agreed to cut combined output by about 1.8 million barrels a day in the first six months of the year in the hopes of pushing up global oil prices.

Analysts said the lack of a solid decision to extend the cuts could bring oil prices down.

Russian Energy Minister Aleksandr Novak said it was too early to say whether there would be an extension. But he said the accord was working well and that participants were committed to 100 percent compliance.

Oil prices peaked at over $100 a barrel in mid-2014, before sinking below $30 in early 2016.

After the December agreement, crude prices edged up to above $50 a barrel. They are now around $48.

The United States is not a part of the agreement.

Based on reporting by AP and Reuters