Production cuts lift crude oil prices
Thursday, December 15, 2016
Crude oil prices are the highest they’ve been in nearly a year and a half thanks to an agreement by the Organization for Petroleum Exporting Countries and non-OPEC producers to cut output for the first time since 2001, according to Investopedia.
On Saturday, producers agreed to reduce supply by 558,000 barrels per day — short of their initial target, 600,000 bpd. However, the cut was still the largest contribution by non-OPEC oil producers ever. Russia agreed to cut more than half at 300,000 bpd.
Previously, OPEC members agreed to cut their production by 1.2 million barrels per day, which will take effect on Jan. 1, 2017.
As a result of both efforts, oil prices have risen by 20 percent.
Learn more: Investopedia > Crude oil soars after OPEC and non-OPEC countries agree to production cuts (USO, XMO)
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