Opec countries agree first oil output cut in eight years

[Eugene]

Source: BBC

Opec countries agree first oil output cut in eight years

30 November 2016 Business

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.

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Read more: http://www.bbc.com/news/business-38155185

[doc03]

1. So I guess that means the day of cheap gas is over. We get

a Republican an we will be paying $4 a gallon again.

[FBaggins]

2. Not at all

They can't let oil get consistently much above the $50-60 range that they appear to be targeting or U.S. production will start to spike again - forcing them to lose even more market share.