Oil on rise after OPEC deal

OPEC has reached an agreement to cut oil production, its first such deal in almost a decade, and one that includes Russia, sending the oil prices up 10% immediately to around $US50 per barrel.
Oil on rise after OPEC deal Oil on rise after OPEC deal Oil on rise after OPEC deal Oil on rise after OPEC deal Oil on rise after OPEC deal

Oil

Staff Reporter

The move, which many considered impossible to achieve when it was first floated in Algiers in September, will see output cut by around 1.2 million barrels of oil per day from January.

Saudi Arabia, Iran and Iraq, the group's three largest producers, overcame deep divisions to end the cartel's two-year flirtation with free market economics, and Iraq even bowed to requests to set quotas, its first since the 1990s.

Saudi Arabia will reduce output by 486,000bopd to 10.058 million a day and Iraq has agreed to a cut of 210,000bopd.

Iran has been allowed to increase its output to 3.8MMbopd, whereas the Saudis had wanted it to limit output to 3.7MMbopd.

The United Arab Emirates and Kuwait will reduce output by 139,000bopd and 131,000bopd respectively.

In softer commodities, cocoa increased $17 per tonne or 0.71% to $2406/t yesterday from $2389 in the previous trading session, tradingeconomics.com reported. Historically, cocoa reached an all-time high of $4361.58/t in July of 1977 and a record low of $211/t in July of 1965.

Coffee decreased 5.90c per pound or 3.92% to 144.75c/lb yesterday from 150.65c/lb in the previous trading session, tradingeconomics.com reported. Historically, coffee reached an all-time high of 339.86c/lb in April of 1977 and a record low of 42.50c/lb in October of 2001.

 

 

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