Uber adds option to tip drivers as it heads in new direction
North Korea lashes out at trade sanctions
Oil Falls to Three-Week Low on Rising U.S. Output
Hawaii Defies Donald Trump, Signs Bills To Stay In Paris Climate Accord
Saudi Arabia, Russia agree oil output cuts until March 2018
16 May 2017, 07:04 | Cedric Leonard
Oil prices extended sharp overnight gains in North American trading on Monday, after Saudi Arabia and Russian Federation agreed to extend oil output cuts for a further nine months until March 2018 in a bid to erode a global crude glut.
While output curbs that started January 1 are working, global inventories aren't yet at the level targeted by OPEC and its allies, Saudi Energy Minister Khalid Al-Falih said in Beijing alongside his Russian counterpart, Alexander Novak.
Saudi Arabia's Energy Minister Khalid al-Falih (L) and Russia's Energy Minister Alexander Novak attend a joint briefing in Beijing, China May 15, 2017.
World oil prices jumped on Monday, with US crude futures trading 3% firmer at more than $49 a barrel.
Brent crude, the global benchmark, had risen US$1.54 to US$52.38 a barrel by 1005 GMT (6.05 a.m. ET) and traded intraday at US$52.52, the highest since April 24.
The price for West Texas Intermediate hit a five-month low, with the June futures contract losing $2.30 United States of America to end the day at $45.52.
"Extending the cuts until March 2018 would take account of the fact that demand in the first quarter of a year is lowest for seasonal reasons", said Commerzbank analyst Carsten Fritsch.
Opec countries and countries outside the cartel participating in the deal on reducing oil production have reached a full consensus on extending the deal, Al-Falih said.
This agreement was initially planned in November where OPEC members agreed to cut output by 1.2 million barrels a day. Current US production is at 9.3-million barrels a day, up more than 10% since its mid-2016 trough.
Russian Federation is the world's biggest oil producer, while Saudi Arabia is the biggest exporter.
US drilling activity last week rose to its highest since April 2015.
Another forecast for rising supply from America's shale fields is "exactly the type of thing that undercuts" supportive headlines from OPEC and Russia, Kilduff said.
Its US counterpart West Texas Intermediate fell below $45 at the end of last week and after a similar rally, was down 0.1 per cent at $46.19 a barrel this afternoon.
However, Libya have increased output and North America have also surged in production, which is likely to undercut OPEC's strategy to re-balance the market and prop up prices.
OPEC and non-OPEC countries will meet in Vienna on 25 May to decide whether they will extend the original cuts, which are due to end in June.
"With any extension likely to keep prices elevated, it will be interesting to see whether the U.S. can continue to ramp up production on the same scale as it has in recent months".
'Scream Queens' Not Coming Back for More Stories on FOX
Fox co-chairman and CEO Gary Newman confirmed the news this morning on a conference call, according to The Hollywood Reporter . While the critical response was somewhat more positive, Scream Queens failed to improve upon its dwindling ratings.
Gang Members Arrested in US Nationwide Crackdown
ICE's anti-gang initiative has led to more than 47,000 gang-related arrests since it began in 2005, officials said. Eight of the MS-13 members caught crossed the border as unaccompanied minors, according to the release.
New iPad Pro 2 Leak Points to June WWDC Launch
The 12.9in version starts at £729, so there's plenty of room in the middle, say £629, for the base model of the 10.5in iPad Pro. This could mean that the iPad could lose its bezels from all the sides, making it the freshest looking tablet in the market.
Tesla's Highly Anticipated Solar Roof Tiles Hit The Market
Taking all that into account reduces the cost of a new roof to close to that of a conventional roof, assuming it lasts 30 years. Thus they enable homeowners to harness energy from the sun all day without having to install any additional panels.
IPL 2017: Gutsy Kings XI Punjab highlight penultimate week
Kings Xi Punjab on Thursday kept their playoffs hopes alive after they narrowly beat table toppers Mumbai Indians by 7 runs . This time though, fortune was on Saha's side as he blasted 93 not out off just 55 balls to set up KXIP's total of 230/3.