Oil-producing nations struck a deal over the weekend to cut output along with the Organization of the Petroleum Exporting Countries (OPEC). The pact is designed to reduce a global oversupply of crude, lift prices, and lend support to economies hurt by a two-year market slump. The agreement would remove 558,000 barrels a day of crude oil from the market on top of 1.2 million barrels a day in cuts already agreed to by OPEC, amounting to a total of almost two percent of global oil supply.
The cuts, if carried out as described over the first half of 2017, would represent an unprecedented level of cooperation among oil-producing countries. However, oil market analysts have said prices would not go up if the bulk of the cuts were from countries where production is already expected to fall.
Source: NAFB News Service