Mexican Media Brands
OPEC Agrees to Extend Oil Production Cuts for 9 Months
More than a dozen major oil producers, led by the Organization of the Petroleum Exporting Countries, have agreed to continue curbing their output until through next May.
#economics
Share
More than a dozen major oil producers, led by the Organization of the Petroleum Exporting Countries, have agreed to continue curbing their output until through next May.
OPEC, along with Russia and several other non-cartel members, agreed last December to lower their combined daily output by a combined 1.8 million barrels, or roughly 2% of global production through the first half of 2017.
The cutback is intended to shrink a worldwide glut of petroleum stockpiles, which has kept oil below $55 per barrel—less than half the price in mid-2014—for more than two years. OPEC predicts the extension will bring inventories into their normal five-year average by year-end and lead to $70 oil prices by 2020.
But analysts aren’t so sure. They note that higher oil prices is likely to trigger more North American production from oil shale, a trend that brought on the current glut.
RELATED CONTENT
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.