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OPEC member countries have agreed on oil output limiting

OPEC member countries have reached an agreement on collective reduction of oil output by 1,2 million barrels per day to 32,5 million bpd, as Bloomberg reports with a link to one delegate.

01.Dec.16 12:48 AM
By Anna Tuzova


OPEC member countries have agreed on oil output limiting
This is the first production reduction since 2008. After several weeks of intensive negotiations, the largest producers of the cartel – Saudi Arabia, Iran and Iraq – have settled differences on distribution of the workload of the oil output reduction. For his part, Minister of Petroleum of Iran Bijan Namdar Zangeneh has assumed, that oil price would be over $50 in view of the market situation. It is the market who says that the price would be over $50, not Iran or OPEC, said Zangeneh.

The official OPEC meeting at which the cartel could finally decide on oil output reduction held yesterday in Wien. In late September on the informal meeting in Algeria OPEC has agreed on limiting oil output in the range between 32,5-33 million barrel per day, but there weren’t any arrangements on the specific levels for countries.

Before the beginning of the meeting Saudi Energy Minister had pointed out that he was optimistic about OPEC agreement on oil output limiting. He added that Saudi Arabia agreed with the exceptions in the reducing for Libya and Nigeria and Iran’s pre-sanctions level of oil output is acceptable for the agreement.

As at 7:00 am (UTC-6) on 30th November, the Brent February futures prices on the ICE exchange was over $51pb fir the first time since 25 October 2016. The maximum Brent price was $51,4 which is 8,62% higher than previous trades level.

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