OPEC’s rebalancing continued in Vienna on May 25, with OPEC president Khalid Al-Falih saying that an alliance of OPEC and non-OPEC members agreed to extend production cuts for nine months in an effort to reduce the global oil glut and lift prices.

Al-Falih, Saudi Arabia’s minister of energy, said at a press conference that six months would bring OPEC the rebalancing it wants but that the cuts would be given extra time to take root.

“However, it will coincide with the seasonal demand declines starting the first quarter and going into the second quarter,” Al-Falih said. “If we were to lift the production limits, then we could have a sizable stock build in the first quarter, so the nine months will avoid that.”

For the most part, the news matched analysts’ predictions, although word of both shorter and longer extension cuts and variations on how much to cut were in play. Ultimately, OPEC agreed to sacrifice market share for price increases.

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