OPEC and Russia took a step toward a deal to extend their oil production cuts until the end of next year as they presented a united front at talks in Vienna.

A committee of ministers from major producers including Saudi Arabia and Russia recommended extending their supply agreement for six to nine months beyond the current end-March expiration, Kuwait’s Oil Minister Issam Almarzooq told reporters after the meeting Wednesday. Final details will be announced on Thursday, said his Russian counterpart Alexander Novak.

Oil traders will examine the final communique from Thursday’s meeting with special attention. If OPEC signals it’s going for a nine-month extension, it would satisfy market expectations for a strong deal. If the producers were to agree to only three more months of cuts, with an option to add another six months after a review, it would be a disappointment.

The ministerial committee recommended a full nine-month extension, said people familiar with the deliberations.

Prior to Wednesday’s talks, banks including Citigroup and Goldman Sachs warned investors to prepare for disappointment because of Russia’s hesitance to prolong the cuts.

There was no indication that Moscow had received the assurances on how and when the agreement could be phased out, but Russia’s Novak said the talks were productive.


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