An OPEC press official told reporters negotiations will continue Friday between the 15-member organization and non-OPEC oil producing allies, which include Russian Federation and nine countries, to discuss how much they can contribute to supply cuts.
Also, it seems that factors other than OPEC production are playing a bigger role in determining oil prices.
USA production is expected to average more than 12 million bpd in 2019, an increase of more than 3 million bpd in 2016.
One stumbling block to an agreement had been Iran, Saudi Arabia's regional rival and fellow OPEC member, which had been arguing for an exemption to any cuts because its crude exports are already being pinched already by USA sanctions.
OPEC will first reconvene on Friday without outside partners, at 9 a.m.in Vienna, then at 12 p.m. the group meets with its non-OPEC allies, including Russian Federation, a delegate said. Benchmark New York crude was $2.11, or 4.1 percent, higher at $53.60 a barrel.
The uncertainty surrounding OPEC/OPEC+ negotiations in Vienna strengthened the overwhelmingly bearish sentiment in oil markets this week, but a larger than expected cut has sent oil prices soaring.
The Trump administration has supported that transition by opening new public land to drilling and loosening restrictions on public and private oil and gas production, with "energy independence" as a frequent talking point.
Crude surged as much as 5.4% in London, raising the risk that the deal could anger U.S. President Donald Trump, who had urged the group to keep the taps open and prices low.
OPEC will propose that non-member producers contribute an additional 0.4 million bpd to the cuts, the source said.
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When Iran's oil didn't get taken off the market, we had a tsunami of oil available, said Badiali. Following the announcement, Brent crude, the global standard, was up $2.79 a barrel, or 4.7 percent, at $62.85. This year's OPEC agreement seeks to limit the market imbalance and stem the recent price decline while not driving prices substantially higher - a move that more closely resembles behavior prior to 2014. This caused a sharp drop in the price of crude oil from its peak in October.
But with the U.S. Senate determined to punish Saudi Arabia for the killing in October of journalist Jamal Khashoggi, a U.S. resident and prominent critic of the Gulf kingdom's Crown Prince Mohammed bin Salman, some Western diplomats and analysts aren't so sure that the Saudi-led cut was without a political motive.
Asked about pressure from Trump, Al-Falih said that oil companies in the United States would appreciate the group's efforts. The US announced exemptions for countries such as India, China etc., allowing them to import crude oil from Iran.
"Having the next meeting in April will be important for planning purposes to speed the cycle up a bit", she said.
"We'll cut 1.2 million bpd total", Iraq's Oil Minister Thamer Abbas al-Ghadhban told reporters after the meeting.
"The Conference discussed the increasing market volatility and the broad consensus on the prospects for 2019 that suggests higher supply growth than global requirements, taking into account prevailing uncertainties", said the OPEC press release.
In a striking development, the USA government revealed that it turned into a net exporter of petroleum for the first time in 75 years last week thanks to the shale boom.
Nigeria, which benefitted from similar exemption between January 2017 and July 2018, would be expected to further cut its current low 1.73 million barrels per day.