01.12.201702:51:00UTC+00Oil Prices Rally After OPEC Extends Production Cut Deal

Oil futures rallied on Friday after OPEC reached an agreement with other major producers to prolong their production curbs in a widely expected decision with an end target of ending a prevailing glut in global supplies.

The producer cartel, along with other non-OPEC producers led by Russia reached a consensus on Thursday to retain the output cuts until the end of 2018, while also indicating a possible early exit from the agreement if the market overheats.

U.S. crude futures traded up 18 cents or 0.3 percent at $57/58 per barrel. Brent crude futures edged up 24 cents at $62.87 per barrel.

Earlier, analysts said the nine-month extension were already priced in oil quotes. Over November, the Brent and U.S. WTI rose by 3.6 percent and 5.6 percent respectively as traders drive up prices in expectation of the cuts being extended past their scheduled expiry in March 2018.

Last winter, OPEC along with non-OPEC producers, including Russia, joined in a deal to curb 1.8 million bpd from the market in order to rein in oversupply and drive up prices.