Wake up to what matters from Mike Allen each day

Stories

OPEC and Russia set to extend production deal

Russian Prime Minister Dmitry Medvedev, left, greets Mohammad Sanusi Barkindo, OPEC secretary general, back in May, 2017. Photo: Alexander Zemlianichenko / AP

Barring last-second hiccups, reports from the OPEC meeting in Vienna signal that OPEC and Russia will agree to extend the production-limiting agreement by nine months through the end of 2018.

Why it matters: The cooperation between Saudi Arabia and Russia curbing the global supply glut is in part a signal of how the U.S. supply surge has forced a new era in oil geopolitics.

Details:Earlier this morning, Bloomberg reported: "Even though an extension through the whole of 2018 is all but certain, the cartel plans to hold a regular ministerial meeting next June, giving it the flexibility to alter the policy mid-game. For some oil investors, that potential review is a cause for concern. For others, it's just the natural course of the cycle of twice-yearly OPEC meetings." Read their updated piece here.As the AP points out, it's basically a decision to "continue pumping less oil for more dollars."

More stories loading.