Finance: European stocks are mixed after reports OPEC has agreed to continue production cuts

The cartel is expected to extend production cuts for another six to nine months following recent statements from major oil players.

LONDON — European stocks are mixed on Thursday as market participants look beyond reports that OPEC has — as expected — agreed to extend production cuts.

Bloomberg reported on Thursday morning that the cartel of major oil producers agreed to continue the cuts in a further effort to rebalance the oil market and address the global supply glut that has subdued prices, citing a delegate at OPEC's meeting in Vienna who asked "not to be identified before an official announcement is made."

Later Reuters also reported the news, citing delegates. The extension, which is yet to be officially confirmed, means that cuts will now continue until March 2018.

Just before 1.35 p.m. BST (8.35 a.m. ET) no major bourse has moved more than 0.5%, with most marginally lower on the day. Here is the scoreboard:

Writing in an email early on Thursday morning, FXTM analyst Lukman Otunuga said:

"Oil prices were heavily supported this week by the growing optimism over major oil-producing countries working together to eliminate oversupply woes. With markets widely expecting OPEC and Non-OPEC members to extend the current output cut deal by another nine months, compliance is likely to be the main focus of today’s meeting.

"With compliance still a grey area, it will be interesting to see if OPEC enacts penalties in the new deal to prevent other members from cheating or going against the agreement."

The cartel is expected to extend production cuts for another six to nine months following recent statements from major oil players. Read Full Story