Good news! oil price increased to $50 per barrel

The Organization of Petroleum Exporting Countries (OPEC) has agreed to cut oil production from January, 2017.

Qatar’s Minister of Energy and industry and also President of the OPEC Conference, Dr. Mohammed Bin Saleh Al-Sada,  made the declaration to newsmen after the meeting. He said they decided to introduce a new OPEC-14 production target of 32.5 mb/d, in order to address the current predicament of the oil market.

Saudi Arabia and iran have all agreed to cut off productions, Saudi by 486,000 barrels of crude daily and iran by 90,000 barrels per day, while Nigeria and Libya have been excused.

However, Indonesia has suspended its membership from the group for not complying with the reduction deal. 

Non OPEC members also accepted the reduction deal with 600,000 barrels per day, with Russia taking the highest  cut of 300,000 barrels per day. 

With the news of the development, oil price appreciated with more than 5 percent, thereby increasing the price of crude to $50 barrels.  Source- Daily Trust