OPEC, non-OPEC Agree to Cut Oil Output to Boost Oil Prices

OPEC, non-OPEC Agree to Cut Oil Output to Boost Oil Prices

The Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC Russia, on December 10, 2016, reached a mutual agreement on their first deal since 2001, to jointly restrict oil production to control the excess global availability of the oil and thus boost oil prices. It is the first time in 15 years

that a global pact has been struck. The decision between the two organizations was taken as the prices of the oil went down to very low for more than two years disturbing the budgets and creating unrest in some countries. OPEC has agreed to put down the oil production 1.2 million barrels per day (bpd) from January 1, with top exporter Saudi Arabia cutting as much as 486,000 bpd. While non-OPEC producers agreed to reduce output by 558,000 bpd, from the previous 600,000 bpd but still the largest contribution by non-OPEC ever. Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 nations, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabiaand Venezuela), and headquartered since 1965 in Vienna to coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry.

OPEC :

♦ Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 nations.

♦ Founded :1960

♦ Headquarters Vienna, Austria