Opec extends oil production cuts; bitcoin plunges below $10,000 –as it happened

Opec and non-Opec energy ministers extend their output curbs to the end of 2018, after they met in Vienna today

• Bitcoin: Back over under $10,000
• Opec president: We must stick together
• Saudi Arabia wants nine-month extension
• Current deal cuts 1.8m barrels per day from output
• Introduction: Opec is meeting in Vienna

6.15pm GMT

Breaking news:

Saudi energy minister Khalid al-Falih has confirmed that the agreement on curbing output will be extended. He said, the decision has been unanimous, a solid decision to extend deal through December 2018. It is basically a one year agreement, he said, tweaking the language to strengthen agreement.

6.04pm GMT

Brent crude is currently up 0.4% at $63.37 a barrel, as Opec and non-Opec producers (Russia being the key member of the latter) agreed to extend their output curbs until the end of 2018.

But West Texas Intermediate - the US benchmark - has slipped 0.5% to $57 a barrel.

5.42pm GMT

Reuters is also reporting that a delegate has said that Opec and non-Opec members have agreed the extension at the afternoon meeting.

5.38pm GMT

Venezuela tweets confirmation of Opec/non-Opec cuts deal extension by 9 months #oott https://t.co/nvpetFyGYF

5.06pm GMT

Contrasting fortunes for US and European markets. Hopes that the Republican tax plan will be passed, along with a rebound in technology shares, has helped lift Wall Street to new peaks. But European shares slipped back as the euro held up, and the FTSE 100 similarly fell back on sterling strength against the dollar. The final scores showed:

4.05pm GMT

Now there will be a group photo and then the meeting will continue in private.

4.04pm GMT

The positive trend in the market is driven by good fundamental metrics, says Novak.

We are continuing to see inventory draws, a significant decline in volatily and investment returning. We are also seeing....good demand growth.

4.00pm GMT

The key player among the non-Opec countries is of course Russia. Its energy minister Alexander Novak says the joint efforts are benefiting the whole global economy.

3.53pm GMT

We deliberated on the extension of the agreement at the Opec meeting this morning, and this will now be deliberated with our non-Opec colleagues, he says. We must continue to work in unison and stay the course.

(Opec members have reportedly agreed to extend the output curbs from March 2018 to the end of the year, but this needs now to be agreed by non-Opec participants.)

3.52pm GMT

Demand is on firm ground, he says, and there has been 100% compliance to the target by Opec and non-Opec members.

We are heading in the right direction but we are not where we want to be, we must remain focused, he says.

3.51pm GMT

The meeting's chair, Saudi energy minister Khalid al-Falih is making his opening statements, saying the declaration a year ago was a landmark achievement and has helped the oil industry recover. He says many thought it would might not affect market conditions, but the effects are self evident.

3.29pm GMT

The Opec and non-Opec meeting is about to start shortly and can be seen live here. The press conference will apparently follow afterwards.

3.21pm GMT

The pound has continued its gains against the dollar and is now up 0.8% at $1.3515.

This is the first time sterling has been higher than $1.35 since the end of September. The currency is benefitting from growing hopes that some key Brexit agreements will be made, but there are also some US developments which are denting the dollar. Connor Campbell, market analyst at Spreadex, says:

The dollar lost a step this afternoon as news broke that Donald Trump is looking to get rid of Rex Tillerson as State Secretary and replace him with CIA chief Mike Pompeo.

In the aftermath of the reports cable saw its gains widen to 0.8%, lifting the pound above $1.35 for the first time since the end of September, while the euro rose half a percent and the yen erased its early losses. All this is presumably because investors aren't too happy to see further signs of discord in the Trump government just as progress is being made on the tax bill.

3.10pm GMT

Meanwhile on Wall Street, the Dow Jones Industrial Average has climbed above 24,000 for the first time.

A rebound in technology stocks and continuing hopes of progress with the Republican tax cut plan have combined to send US markets higher. The Dow is currently up 132 points at 24,073 while the S&P 500 opened up 0.36% and the Nasdaq Composite 0.4%.

2.55pm GMT

Regarding reports that OPEC has agreed to 9-month extension: wait to read the fine print.

2.48pm GMT

The pound has just hit a new nine-week high against the US dollar, at $1.3494.

Connor Campbell of SpreadEx says optimism over Brexit is helping sterling:

The pound is continuing to dine out on the signs of Brexit progress, with yesterday's reports of a divorce bill agreement joined by a rumours that the UK and EU are 'close to a breakthrough' on the Irish border issue.

2.35pm GMT

Over at Opec's luxury hotel, energy reporters are tucking into a range of delicious nibbles:

Opec: how can we make this experience more miserable for these pesky reporters?

Opec kitchen: satsuma slices with ham?#OOTT #OPEC pic.twitter.com/NSeuHublRT

2.14pm GMT

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1.49pm GMT

Bitcoin has continued to drop, to below $9,200.

That means whoever bought the cryptocurrency at yesterday's record highs has lost around $2,000 per bitcoin.

UPDATE: Bitcoin slides more than $2,000 in under 24 hours to $9,146, 7 percent lower on day and 20 percent down from Wednesday's peak pic.twitter.com/F9QRuFAIZQ

1.32pm GMT

Some photos from the Opec meeting have landed:

1.09pm GMT

Cailin Birch, Commodities Analyst at the Economist Intelligence Unit, warns that oil producers are losing their enthusiasm for output cuts.

She says:

"Political will to maintain the quota system is beginning to wane among some OPEC countries and some non-OPEC partners, including Russia. Global oil prices have held over US$60/b for over a month now, a level that was unimaginable earlier this year. Global oil stocks are beginning to decline, closer to the five-year average range.

As a result, some key producers appear to be interested in ending the production-cut deal sooner rather than later, in an effort to preserve market share.

The EIU considers it to be more likely that the cuts will be extended through to end-2018, with an option to review this agreement at mid-year -- a nod to some partners less willing to stay on board.

Although the global market is beginning to tighten, oil supplies remain comfortable and US output continues to rise; this means that continued restraint by OPEC will be necessary to erode global stockpiles further.

12.17pm GMT

Bloomberg are reporting that a deal to extend Opec's production cuts by nine months is in the bag.

Ministers are now discussing how to review the situation next June.

Done

*OPEC AGREES TO EXTEND OIL SUPPLY CUTS TO END OF 2018: DELEGATE

*OPEC TALKS MOVED ON TO DETAILS OF MID-YEAR REVIEW: DELEGATE

11.51am GMT

The oil price is rallying, following this morning's loud hints from Opec that production cuts will be extended at today's meeting in Vienna.

Brent crude has jumped by a whole dollar per barrel, or 1.6%, to $64.11.

#Brent prices move higher in anticipation of the #OPEC's verdict, however all members of the cartel and those out of the OPEC seem to fully back a further extension of the ongoing production cuts. pic.twitter.com/JVBExUwm81

Only a more aggressive cut is likely to provide any substantial upside, although I'm not sure there'll be much appetite for such action given the progress that's already been made and the market share that is being conceded to US shale as a result.

11.22am GMT

Financial traders are fascinated by Bitcoin's wild gyrations, says City Index.

Given the current price action of the cryptocurrency, headlines are easy to come by, and yesterday was no different. The virtual currency gained over 15% in the early part of the day, charging through $10,000 to a fresh all time high of over $11,000, before plummeting as much as 21%, with incredible speed to $9009.

Whilst traditional assets are experiencing historically low levels of volatility, the whipsaw action of the bitcoin is drawing the attention of traditional traders. Meanwhile existing traders and new comers are increasingly interested in fear of missing out.

11.12am GMT

Bitcoin is falling out of bed again.

The cryptocurrency has now tumbled $9,500, a loss of $1,000 compared to this morning's height.

Would you accept payment exclusively in #Bitcoin? Well one private seller on Auto Trader would, for this 117,995 gold @RollsRoyce Ghost. Find out more here https://t.co/LSmr7REA7P pic.twitter.com/DxNF8MJdPq

10.56am GMT

Robert Chote, who runs the independent Office for Budget Responsibility, says there are several reasons why migration into the UK has slowed, including the slump in the pound.

@OBR_UK Head Robert Chote tells @CommonsTreasury decline in net migration reflects weaker "pull factors", including fall in sterling and drop has been in line with projections. Today's data showed net migration fell to 230,000 in the 12 months to June (peak was 336,000)

Bear in mind that there has also been economic recovery in the EU and quite a fall in youth unemployed.

Net migration down 100K from June 2016. This is being driven by lower net migration from the EU. Migration still positive, but firms with high turnover and lots of EU staff are likely to be feeling the pinch. pic.twitter.com/EIZ6VUCs8D

Net migration has fallen by 106,000 in latest figures, while those coming to UK for confirmed jobs has risen - highlighting that our system is delivering for business needs in UK.

10.44am GMT

Migration into the UK from Europe has slowed sharply since the Brexit vote last year, as fewer people come to Britain looking for a job.

New figures from the Office for National Statistics show that net migration into the UK fell to 230,000 in the year ending June 2017.

The reduction in net migration was particularly from EU15 citizens (down 29,000 to +55,000) and EU8 citizens (down 34,000 to 8,000): https://t.co/38jCxLAKfQ pic.twitter.com/57dADWE7gW

10.32am GMT

Newsflash: Unemployment in the eurozone has hit its lowest level in almost nine years.

The euro area jobless rate has dropped to 8.8%, the best reading since January 2009, as the region's recovery continues.

The euro area unemployment rate is back at its long-term average (8.8%, lowest since January 2009). pic.twitter.com/EGKXxqHMdl

Euro Area unemployment rate at 8.8% in November. It is, however, worth highlighting just how far apart the area`s 3 largest economies are. pic.twitter.com/M9cyawz3Ka

10.30am GMT

Al-Falih also touches (briefly) on environmental issues.

He says Opec should give climate change "due attention" and "continually engage on environmental issues" (while still pumping millions of barrels of oil out of the ground each day to be burned or turned into plastic, presumably).

10.16am GMT

The press pack have now been shooed away from the oil ministers, and the Opec meeting is formally under way.

History says that as you get closer to the goal, commitment wavers. I call on you all to stay the course, rather than relying on others.

9.54am GMT

Ot oh..Bitcoin is losing some of its earlier gains, and is now back at $10,075.

That's a gain of 2.5% so far today.

9.53am GMT

A scrum of TV cameras have swarmed around Saudi Arabia's oil minister.

Khalid Al-Falih says that he believes Opec should continue its current policy of curbing oil output, to get the market back into balance.

We are not complacent. We are going into 2018 half done. We need all of 2018 to get the job done.

Should it require a change we can consider it in June, says @Khalid_AlFalih #OOTT #Opec

"The exit will be very thoughtful...it is premature at the moment" says @Khalid_AlFalih #OOTT #opec

9.40am GMT

Iran's oil minister says that $60 per barrel is a 'good price' - a sign that the Iranian government is happy with the production cuts deal.

9.39am GMT

Across the room, Kuwaiti's oil minister has told reporters that he supports a nine-month extension to the cuts deal.

9.38am GMT

NEWSFLASH: Saudi Arabia's oil minister has dropped a strong hint that Opec will agree to extend production cuts by nine months today.

Khalid A. Al-Falih has told reporters in Vienna that the existing deal is working well, and there is "perfect alignment" between Opec members.

Saudi minister @Khalid_AlFalih says "if something is working you don't let go". Inventories have not yet reached the numbers we would be comfortable with #OOTT #Opec

Saudi minister @Khalid_AlFalih says we are entering a period of slightly lower demand so the inventory drawdown is going to be primarily in second and third quarter of 2018. "We will not lift the foot off the pedal" until inventories better #OOTT #Opec pic.twitter.com/vZ18edybhr

Saudi minister @Khalid_AlFalih says "my preference is for a 9month extension" but we need 24 countries to sign on and be committed #OOTT #Opec

9.32am GMT

The Opec meeting is open, and journalists are racing into the room to quiz energy ministers....

9.31am GMT

Newsflash: Iraqi officials have said they support extending Opec's output curbs deal until the end of next year.

#iraq now saying they agree to a 9 month extension as well. #Iran says long term agreement will help support the market too. #opec #shale #Vienna meeting update.

9.27am GMT

Russia isn't an Opec member, but it can still play a key role at today's meeting.

A year ago, Russia threw its weight behind the oil output curbs drawn up by Opex. That deal took 1.8 million barrels per day out of the market, helping to push crude prices up this year.

Russian Economy Minister Maxim Oreshkin recently indicated that their economic growth in October was negatively affected by their deal with OPEC. The Economy Minister's comments are the first by a senior Russian official giving a negative assessment on the deal where Russia agreed to cut output by 300,000 bpd compared with its level in October 2016.

These comments are understandable given Russia's heavy oil dependence. However, they should arguably be willing to take some short-term pain to gain the benefit of medium term price gains. The country lost out heavily during the oil price collapse in 2008-09 and mid-2014. We expect the country to accept and cooperate over the cutback extension at the OPEC meeting in Vienna

9.25am GMT

The Opec meeting is being streamed live, here.

9.14am GMT

The reporters covering Opec are keeping warm by huddling together in a stairwell, waiting to be allowed into the meeting.

Welcome to my life. #OPEC #OOTT pic.twitter.com/dMmXbhLz0N

Still waiting #OPEC pic.twitter.com/vzeeeo7ddl

9.11am GMT

Brent crude has risen by 0.5% this morning, to $63.45 per barrel.

Several delegates are hinting that Opec will indeed extend its output curbs by another nine months today.

Senior OPEC Source: Decision At Thursday's Meeting "Not Likely" To Be A Surprise - RTRS #OOTT

9.02am GMT

Hopefully the Opec delegates remembered their hats and gloves.

#OPEC meets later today...and it's snowing in Vienna pic.twitter.com/05RRSZ9KSH

8.55am GMT

The chatter in Vienna is that Opec will agree to cut oil output for an extra nine months.

The current production deal expires in March - but ministers are now considering extending it until the end of 2018.

While there has not been an official statement, OPEC and Russia seem ready to prolong their oil supply cuts until the end of 2018. The cuts were put in place last January and are set to expire next March.

However, an extension may include a review in June should healthy demand amid ongoing supply restraint overheat the market.

#Oil prices edge up ahead of #OPEC meeting in #Vienna due to extent production limits for another 9 months#Brent #WTI #OOTT #shale #Saudi #Iraq #Russia #Iran #Libya #Nigeria #gas #fuel #energyhttps://t.co/Cs3wyPxIHk pic.twitter.com/KYgdg3Bhsj

8.48am GMT

Sterling has hit a new nine-week high this morning, driven by hopes that the UK and Europe will hammer out a Brexit deal.

The pound is trading at $1.34, the highest since 26 September. Investors are hopeful that the two sides will reach agreement on Britain's 'exit bill' next month, and move onto trade talks.

Optimism that our Brexit negotiators can do a deal at December's summit and move onto crucial post-Brexit trade talks, is greater now than it has been.

Believe in it or not, bitcoin is worth over $10,000 again. Cryptocurrency land's extreme volatility is like catnip to high-risk traders, and even traditional investors are dipping their toe. Given there's no logical way to value them with any accuracy, this remains Wild West stuff.

8.33am GMT

Bitcoin's wild swings have left some experienced City figures a little baffled.

Martin Gilbert, co-CEO of Standard Life Aberdeen, was on Bloomberg TV this morning, and asked if he's been buying crypto-currencies.

I wouldn't even know how to buy it.

.@MartinGilbert83 talks to @ManusCranny & @annaedwardsnews about first 100 days since the merger pic.twitter.com/vnovpzNuO9

8.28am GMT

Even by bitcoin's usual standards, this is turning into quite a dizzying week.

Last night, the crypto currency plunged by 20% (!) after hitting a fresh record high over $11,300 yesterday.

Well bitcoin prices are on a roller coaster. Peaked over $11k. Dropped to $9.4, rose, around $10k now. Volatile. People cashing out and others rushing in - or more likely strolling in as transactions aren't fast

Top to bottom Bitcoin moved 19.8% yesterday but yeah, it's a currency pic.twitter.com/JNXfEjpf8Z

8.13am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Today's main event is expected to be the OPEC meeting in Vienna where it is expected that oil ministers will extend the output freeze by another 9 months, until the end of 2018. That is certainly what a ministerial committee of oil producers recommended yesterday, however that didn't stop oil prices continuing their recent slide lower ahead of today's announcement.

There appear to be some concerns that Russia might well throw a ratchet into the gears, particularly in the context of the length of the output extension. There has been some concern that an extended freeze could well leave the field open to US shale producers who are already pumping at record levels. Therefore the biggest question isn't around an extension, it's about how long the extension lasts for. We should know later today.

European markets opening call @LCGTrading $FTSE -13 points at 7380$DAX +12 points at 13073$CAC +9 points at 5407$IBEX +3 points at 10270

Related: Bitcoin price soars above $11,000 as central bankers seek to calm fears