Oil prices witnessed a surge on Monday. Organization of the Petroleum Exporting Countries and other allied major oil producers have agreed to extend crude oil production cuts for nine months.
The decision was taken at the 176th meeting of the OPEC conference on Monday in Vienna. The meeting was attended by 14 countries which are part of OPEC.
Following which meeting of OPEC+ alliance took place, which is a group of 24 oil producing countries. Russia is a part of OPEC+. OPEC agreed to extend its current 1.2 million barrel per day output cuts for another nine months, to the end of March.
The cartel will meet with Russia, who has already given its approval, and other top non-member producers to agree on the final details, which are expected by Wednesday.
OPEC and its allies led by Russia have been reducing oil output since 2017 to prevent prices from sliding amid soaring production from the United States, which has overtaken Russia and Saudi Arabia as the world's top producer.