Oil prices jumped Wednesday after reports that the Organization of the Petroleum Exporting Countries had agreed to slash production at a conference in Algeria.
OPEC-member countries agreed to slash production by about 740,000 barrels per day to 32.5 million at the Algiers meeting, Reuters reported Wednesday, citing anonymous sources.
Allowable production figures by country will be determined at OPEC's official meeting in November, according to the news agency.
The efforts to build a consensus have been exemplary, and I very much hope that the constructive, accommodating and encouraging nature of our recent talks carries on today," says Mohammed Bin Saleh Al-Sada, Qatar's ministry of energy and industry and president of the OPEC Conference, in his prepared remarks.
The price of West Texas Intermediate crude oil, the U.S. benchmark, soared 4.45% to settle at $46.66 in trading in New York on Wednesday.
It's not all good news for energy companies. OPEC's actions come after the market for crude oil has remained depressed for a longer-than-expected period.
"Back in June, the prospects suggested that the market would re-balance by the end of this year or in the first half of 2017," Al-Sada said. "However, there are now serious questions being asked regarding this time frame, with many agencies and analysts pushing the re-balancing further into the future."
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SOURCE : Usatoday
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