OPEC: Supply Glut No More, Oil Prices Set to Recover
The Organization of the Petroleum Exporting Countries (OPEC) agreed for a modest output cut during the week. OPEC countries will reduce output to a range of 32.5-33 million barrels per day (bpd) from the present output of 33.24 million bpd.
The deal was struck during talks in Algeria to ease global supply fears.
This is the first such deal since the 2008. Iran too has decided to decrease production by around 0.7 million bpd. Despite these modest production cuts, this move could help oil prices recover.
Until a few years ago, US$100 per barrel was the new 'normal' for oil prices. And then this capricious commodity proved everyone wrong. Early this year, crude oil prices hit US$30 per barrel for the first time in twelve years. The root of this turmoil has been the global supply glut.
OPEC is a major source of the turmoil we've seen in crude oil prices.
Crude Oil Surges after OPEC Deal
Crude oil witnessed most of the buying interest during the week. It opened in the green on Monday and maintained momentum throughout the week. Most of the gains came after OPEC agreed for a modest output cut during the week. The news ebbed worries of a global supply glut of crude oil and sent prices soaring.
The deal was struck during talks in Algeria to ease global supply fears.
This is the first such deal since the 2008. Iran too has decided to decrease production by around 0.7 million bpd. Despite these modest production cuts, this move could help oil prices recover.
Until a few years ago, US$100 per barrel was the new 'normal' for oil prices. And then this capricious commodity proved everyone wrong. Early this year, crude oil prices hit US$30 per barrel for the first time in twelve years. The root of this turmoil has been the global supply glut.
OPEC is a major source of the turmoil we've seen in crude oil prices.
Crude Oil Surges after OPEC Deal
Crude oil witnessed most of the buying interest during the week. It opened in the green on Monday and maintained momentum throughout the week. Most of the gains came after OPEC agreed for a modest output cut during the week. The news ebbed worries of a global supply glut of crude oil and sent prices soaring.
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