OPEC reaches deal to cut oil output first time in 8 years
The Organization of the Petroleum Exporting Countries (OPEC) has reached a deal to limit oil production. Production is to be reduced to a range of 32.5-33.0 mn barrels per day, and the deal is expected to come into force in November.
“OPEC made an exceptional decision today. After two and a half years, OPEC reached consensus to manage the market,” Iranian Oil Minister Bijan Zanganeh has said on Wednesday, as cited by Reuters news agency.
“We have decided to decrease the production around 700,000 barrels per day,” Zanganeh added.
The cartel estimates its current output at 33.24 million barrels per day.
Reuters reports that OPEC will settle production levels for each member country at the next formal meeting, set to be held in Vienna on November 30. It will be the first reduction in eight years.
One of the sources also told Reuters that after reaching the target production rate, OPEC will turn to non-OPEC producers for output support.
Representatives of the OPEC countries are currently in Algeria attending the International Energy Forum.
The agreement to cut production among the world’s largest oil producers could lead to oil supply coming more in line with the demand for the energy source.
Following the reports of OPEC’s decision, the price for futures for Brent crude oil has gone up by nearly 6 percent, to $48.72 per barrel on the ICE stock exchange in London by 6:28 pm GMT.
US West Texas Intermediate (WTI) crude oil also rose by 5.4 percent, to $47.02.
“We have decided to decrease the production around 700,000 barrels per day,” Zanganeh added.”
who will drop their output the most?
“The agreement to cut production among the world’s largest oil producers could lead to oil supply coming more in line with the demand for the energy source.”
thats how you lift the price per barrel..