OPEC is extending its production cut until March 2020

Since 2017, the OPEC and a few non-member partners of the organization, like Russia, have been cutting oil production by around 1.2 million barrels a day with a view to backing oil prices in the face of growing US production. After difficult negotiations in Vienna, Russia and Middle Eastern producers finally decided to extend their agreement “in view of the underlying large uncertainties and its potential implications on the global oil market.” While Venezuelan and Iranian exports have been hampered for mainly political reasons, the OPEC decision should displease the Trump administration which wants higher production in order to lower the price at the pump, which is considered an electoral stake and a major determinant of US economic growth.