OPEC decided to cut oil production for the first time in 8 years
2016-12-1
The Organization of Petroleum Exporting Countries (OPEC) decided to reduce the production of crude oil by 1.2 million barrels per day in November 30th at the Vienna conference. This is the first time since 2008, the organization decided to cut production, the decision will be reduced by 1.2 million barrels of crude oil production, and the daily limit of 32.5 million barrels of crude oil production. The decision to cut production will begin from January 1, 2017. This is the first time in 8 years to make a decision to cut oil production, in response to the continuous downturn in oil prices since 2014. OPEC said the same day, decided to cut production is to balance the supply and demand of crude oil market.
According to the information provided by OPEC, in addition to Indonesia, the other OPEC members agreed to cut production decisions. Saudi Arabia cut the most, the daily output of 486 thousand barrels of crude oil, Iraq also agreed to cut 210 thousand barrels of crude oil per day. Non OPEC oil producing countries have reached an understanding with OPEC, the decision to cut crude oil 600 thousand barrels a day, including Russia′s commitment to 300 thousand barrels per day of crude oil production.