Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Oil price soars as Opec agrees output cut

3d image of oil golden barrel background

3d image of oil golden barrel background

The oil cartel Opec has agreed its first supply cut in eight years in order to boost the price of oil.

Mohammed Bin Saleh Al-Sada, Opec’s president, said a cut of 1.2 million barrels a day would start from January.

It comes after more than two years of depressed oil prices, which have more than halved since 2014, due to a supply glut on the market.

The price of Brent crude jumped 10% to $51.94 a barrel, and US crude rose 9% to $49.53.

In addition to the production cut by Opec members, non-Opec countries will be expected to reduce production by 600,000 barrels a day, according to Mr Al-Sada.

He did not list which countries these might be, beyond saying Russia was prepared to cut 300,000 barrels from its output of more than 10 million barrels a day.

“This agreement comes from a sense of responsibility from Opec member countries and non-Opec member countries for the general well-being and health of the world economy,” he said.

The deal comes after oil ministers agreed to a cut in principle in September, which would have limited output by about 700,000 barrels a day while allowing Iran to increase production.

But disagreements between Saudi Arabia – the world’s biggest oil producer – and Iran led to doubts an agreement would be secured.

The Saudis were hesitant to shoulder the lion’s share of a cut, while Iran had resisted reducing its own production, arguing it had yet to recover its output levels after years of sanctions.

At Wednesday’s meeting, however, Saudi Arabia agreed to cut output by about 500,000 barrels per day – a total reduction of about 4.5%.

That will take its output to 10.06 million barrels per day.

Source: http://www.starrfmonline.com/1.10298237

Profile photo of Editor
Follow Us

Profile photo of Editor
Follow Us

Share this article

Leave a reply

Personality of the Month
Follow Us Online
About Us
Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
Events Calendar
<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar