A proposal by a joint committee has outlined their recommendations to extend the OPEC deal that was meant to cut output by 1.8 million barrels per day and 11 countries agreed. The agreement, originally signed in December, would continue for a further six months to reduce oil output.
A meeting is scheduled in Kuwait for OPEC members and rival oil producing countries to review current progress and decide whether to extend the agreement.
OPEC has since “expressed its satisfaction with the progress made towards full conformity with the voluntary production adjustments and encouraged all participating countries to press on towards 100 percent conformity," in a statement to Reuters.
The December agreement, which intended to boost the oil market, did in fact raise the price of oil to $50 a barrel which in return encouraged U.S. shale oil producers to boost output.
Iraqi Minister of Oil, Jabar Ali al-Luaibi told reporters before the meeting that there were some encouraging results as the oil market was improving and if OPEC members all agreed, Iraq would follow suit.
Luaibi noted, ”Any decisions taken unanimously by members of OPEC ... Iraq will be part of the decision and will not be deviating from this.”