Oil production slashed

THE price of oil has continued to fall despite the Opec oil-producing nations agreeing to extend production cuts for a further nine months.

Russia and other nonOpec members have also agreed to slash production for another nine months.

However, despite the cut, Brent crude slid 3.8pc to $51.92 amid expectations the extension would have been much longer and the looming threat of shale gas expansion in America.

Opec countries and 11 other oil-producing nations had first agreed to reduce production in December in an effort to boost flailing prices. The cut, of 1.8m barrels per day, was the equivalent of about 2pc global oil production.