Cuts of 4.5% in production mark a ‘historic moment’, says the organisation. Let’s judge in six months’ time
There is life is the old cartel yet, it seems. A year ago, obituaries were being written for Opec when, despite much bullish talk, it couldn’t agree any production cuts. Now the 14 members – soon to be reduced to 13 as Indonesia sits out for a while – have agreed that 1.2m barrels a day will be removed, a reduction in Opec’s volumes of about 4.5%. It’s a “historic moment”, says the organisation.
In a sense, it is. Opec hasn’t managed such a display of unity since 2008. Regional rivals Saudi Arabia and Iran have found a way to share the burden of lower production, which is a significant development if it lasts. The oil price rose 8% to $50 a barrel.
Link : With its deal on barrel quotas, Opec is back on the radar – for now