Higher oil prices + China Demand = Happy Trudeau
OPEC agrees to cut output to push up oil price
OPEC has agreed to cut its oil production for the first time in eight years, ending a strategy of high supply that had aimed to cripple the U.S. energy industry but also led to decade-low prices and drained the budgets of crude-producing nations.
The cartel will cut 1.2 million barrels a day from its present output after its 14 members put aside differences at a meeting Wednesday to agree on individual production levels.
The move, which will leave OPEC output at 32. 5 million barrels a day, is to take effect in January, said OPEC President Mohammed Bin Saleh Al-Sada.
Al-Sada said major non-OPEC producers were ready to act in concert by tentatively planning to reduce their output. He did not list the countries involved beyond saying Russia was prepared to cut 300,000 barrels from its output of more than 10 million barrels a day.
Al-Sada also announced that Indonesia had suspended its membership rather than agree to its share of cuts.
The price of crude, which had soared earlier in the day amid anticipation of a deal, remained firm after the news. The international benchmark was up $3.48, or 7.4 percent, at $49.86 a barrel.
A production cut could have a lasting impact on consumers as oil price increases feed into the cost of car fuel, heating and electricity. It could also restore some authority to OPEC as an arbiter of prices and supplies after years of inaction.
OPEC had for years been undermined by infighting but also stayed away from production cuts in order to not lose market share to the resurgent U.S. oil industry.
OPEC agrees to cut output to push up oil price - Chicago Tribune
OPEC agrees to cut output to push up oil price
OPEC has agreed to cut its oil production for the first time in eight years, ending a strategy of high supply that had aimed to cripple the U.S. energy industry but also led to decade-low prices and drained the budgets of crude-producing nations.
The cartel will cut 1.2 million barrels a day from its present output after its 14 members put aside differences at a meeting Wednesday to agree on individual production levels.
The move, which will leave OPEC output at 32. 5 million barrels a day, is to take effect in January, said OPEC President Mohammed Bin Saleh Al-Sada.
Al-Sada said major non-OPEC producers were ready to act in concert by tentatively planning to reduce their output. He did not list the countries involved beyond saying Russia was prepared to cut 300,000 barrels from its output of more than 10 million barrels a day.
Al-Sada also announced that Indonesia had suspended its membership rather than agree to its share of cuts.
The price of crude, which had soared earlier in the day amid anticipation of a deal, remained firm after the news. The international benchmark was up $3.48, or 7.4 percent, at $49.86 a barrel.
A production cut could have a lasting impact on consumers as oil price increases feed into the cost of car fuel, heating and electricity. It could also restore some authority to OPEC as an arbiter of prices and supplies after years of inaction.
OPEC had for years been undermined by infighting but also stayed away from production cuts in order to not lose market share to the resurgent U.S. oil industry.
OPEC agrees to cut output to push up oil price - Chicago Tribune
