OPEC decides for output cut and oil prices surge
The organization approved a 4.5% cut starting January 2017. The commodity prices climbed by around 8% in the United States and London.
São Paulo – The Organization of the Petroleum Exporting Countries (OPEC) decided this Wednesday (30) to cut back oil production in 32.5 million barrels a day starting January 2017. In a conference held in Vienna, Austria, the group adopted the resolutions of the Algiers Agreement, signed in the end of September in the capital of Algeria.
The decision will result in a 4.5% cut back in output of OPEC members, or 1.2 million barrels per day. It’s the first time since 2008 that OPEC decides for a reduction of output. The organization has 14 member countries.
The confirmation of what was decided in the Argel Agreeement made oil prices surge in the global market. In the United States, the light crude barrel was priced at USD 49.07 at 3:47 pm, Brasília local time, an increase of 8.49%. In London, the Brent barrel reached USD 50.03, an increase of 8% over the previous day.
*Translated by Sérgio Kakitani