Crude Oil Spikes Higher As OPEC Agrees To Cut Production




30.11.16 21:08
dpa-AFX


WASHINGTON (dpa-AFX) - With traders reacting to news of OPEC's agreement to cut production, the price of crude oil moved sharply higher during trading on Wednesday.


Crude oil for January delivery spiked $4.21 to $49.44 a barrel after plummeting $1.85 to $45.23 a barrel in the previous session.


The substantial increase by the price of crude oil came as OPEC ministers revealed the cartel has agreed to reduce production by about 1.2 million barrels to 32.5 million barrels a day.


The agreement marks the first time since 2008 that OPEC has agreed to curtail production and comes as a supply glut has weighed on prices.


OPEC said the agreement, which will be effective from January 1, 2017, will accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward.


Copyright RTT News/dpa-AFX



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