Oil's earlier price decline, which started in 2014, forced Russian Federation and Saudi Arabia to tighten their belts and led to unrest in some producing countries including Venezuela and Nigeria.
"The precious metals group did well to hold up as well as it did on Thursday given new highs set by the US stock market, a generally firmer dollar and an imploding crude oil market", INTL FCStone analyst Edward Meir said in a note.
"We fully support nine months.it will have more impact on market stability and prices".
Experts believe this is because the meeting was expected to extend cuts to 12 months and thus the outcome was worse than the market had anticipated.
Parties to a measure coordinated by the Organization of Petroleum Exporting Countries are meeting in Vienna to review an agreement to sideline about 1.8 million barrels per day from the market in order to offset strains from the supply side.
"Kazakhstan is planning to continue adhering to its obligations under the existing quota on production reduction at the level of 20,000 barrels per day".
OPEC agreed on Thursday to extend its existing production cuts by nine months - more than the initially suggested six months - in tandem with non-OPEC producers, including Russian Federation.
Despite Saudi Arabia's confidence that the latest OPEC deal will stabilize and lift oil prices, analysts aren't convinced. Iran's Bijan Namdar Zanganeh floated possible extensions of three months, six months or even a year and said his country had "no difficulty" with any of the options, while Jabbar Ali Hussein Al-Luiebi, his Iraqi counterpart, mentioned "the scenario of a nine-month freeze". Russian Federation also added to the expectations by saying this week that cuts could be prolonged by 12 months.
Producers have expressed confidence that this plan will bring down crude oil stocks to their five-year average of 2.7 billion barrels but the market had hoped for a last-minute agreement on more far-reaching action. "This shows there's not much more OPEC can do".
"It also looks like no new non-Opec members are joining the curbs, which would have helped".
In the United States, which has the most timely and reliable inventory data, there are 516.3 million barrels of oil stocked away.
"I am not sure how that came about, because with OPEC the rhetoric was just whether or not to extend the time period".
"We have seen a substantial drawdown in inventories that will be accelerated", Falih said.
Blanch said the supply cut agreement is a result of a price war OPEC started in 2014 with US shale producers and Canadian tar sand players. "Nevertheless, we continued relations, but we should be more accurate", Minister Jabbar al-Luaibi told Rudaw Thursday in Vienna while participating in the OPEC meeting.