An agreement between oil producer club OPEC and Russia to produce less to drain a global glut sent prices soaring in record trading volumes on Thursday, even as analysts warned other producers will likely top up supply.
On Wednesday in Vienna, the Organization of the Petroleum Exporting Countries reached a deal to reduce their oil production by 1.2 million barrels per day in order to raise global prices.
The deal also hinges on non-OPEC countries contributing an additional 600,000 barrels per day worth of cuts, with about half of that coming from Russia. On Thursday Azerbaijan said it was also willing to engage in talks on cuts.
"OPEC has agreed to an historic production cut," analysts at AB Bernstein said. "The cut of 1.2 million barrels per day (bpd) was at the upper end of expectations (0.7-1.2 million bpd). An additional cut of 0.6 million bpd from non-OPEC countries could significantly add to what has been announced by OPEC."
Global oil prices rose nearly 9 percent on today’s news, with Brent crude rising from $46 per barrel up to $51 per barrel. The agreement depends on non-OPEC countries like Russia also agreeing to cut production. Some countries may end up cheating.
“There is a real risk that higher prices could reactivate more dormant shale oil,” said ANZ Research, which expects international oil prices to hit strong resistance at around $60 a barrel in early 2017.
Moreover, a price increase of $10 to $15 a barrel may also blunt the appetite of some oil consumers in Asia who beefed up inventories recently by buying when prices were in the $40 range, analysts say.
Startups need to build a growth plan and exit path early in their life cycle to unlock the value cre
Molti investitori istituzionali stanno iniziando a prendere sempre più in considerazione anche le m
The Responsible Finance Institute (RFI) Foundation and the Swiss Arab Network organize the RFI Summi
FinLantern is glad to invite you to a “Sustainable Apero”
Presentazione di una piattaforma omnicanale per aziende con centralini, call center o contact center
Updates and news from MarketPlus
|SMI® PR||8812.67||-0,36 %|
|LYXOR DAX INAV||118.957||-0,07 %|
|FTSE MIB Index||20609.16||0,06 %|
|FTSE 100||7203.94||-0,46 %|
|CAC 40||5267.33||-0,08 %|
|S&P 500||2384.20||-0,19 %|
|NASDAQ Composite||6047.61||-0,02 %|
|HANG SENG INDEX||24615.13||-0,34 %|
|Powered by Yahoo Finance|