OPEC Agrees to Cut Production in Drive to End Global Glut
November 30, 2016 — 11:54 PM ACDT Share on Facebook
OPEC Agrees to 1.2 Million Barrel Per Day Output Cut
OPEC Agrees to 1.2 Million Barrel Per Day Output Cut
OPEC clinched a deal to curtail oil supply, confounding skeptics as the need to clear a record global crude glut -- and prove the group’s credibility -- brought about its first cuts in eight years, Bloomberg News reports.
OPEC will reduce production by 1.2 million barrels a day to 32.5 million a day, a delegate said Wednesday in Vienna, asking not to be identified as the decision isn’t yet public. Oil jumped 7.6 percent to $49.90 a barrel in London at 1:23 p.m. local time.
After weeks of often tense negotiations, the Organization of Petroleum Exporting Countries’ three biggest producers -- Saudi Arabia, Iraq and Iran -- resolved differences over sharing the burden of cuts to rein in supply for the first time since 2008. Notably, it appears the Saudis accepted that Iran, as a special case, can raise production to about 3.9 million barrels a day. The agreement is also likely to include a reduction of about 600,000 barrels a day by non-OPEC countries.
AOW Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
