OPEC agrees to limit oil output at 32.5 million barrels per day

[Eugene]

Source: Reuters

COMMODITIES | Wed Sep 28, 2016 | 2:37pm EDT

OPEC agrees to limit oil output at 32.5 million barrels per day

OPEC agreed on Wednesday to reduce its oil output to 32.5 million bpd from the current production levels of around 33.24 million bpd, two OPEC sources told Reuters.

The producing group will agree concrete levels of production by each country at its next formal meeting in November, the sources said.

One source also said that once production targets were reached, OPEC would reach out to non-OPEC producers for cooperation.

(Reporting by OPEC team; Editing by Gareth Jones)

http://www.reuters.com/article/us-opec-meeting-decision-details-idUSKCN11Y2F2

[TexasTowelie]

1. I wonder if ISIS will agree to the production cutbacks.

I doubt that they provide any significant amount of oil, but they may see it as an opportunity to undercut the nations they oppose.

[Scurrilous]

2. Oil is going through the roof after a report that OPEC reached a deal to limit production

<snip>

"Oil is going through the roof following a Reuters report citing "sources" that OPEC has reached a deal to limit oil production, with the deal coming into effect in November.

Prices for Brent crude oil, the international benchmark, surged by as much 6.3% to $49.44 per barrel around 2:33 p.m. ET. WTI Crude is up 4.8% at $46.82 per barrel as of 2:45 p.m. ET.

According to Reuters: "OPEC had agreed to limit oil production to 32.5 million barrels per day. Once the group reaches its target, OPEC will go to non-OPEC producers for output support, once source said."

US energy stocks are rallying on the news, with BP up 3.7%, Exxon Mobil up 4.1%, and Chevron up 3.1% around 2:37 p.m. ET. Petro-currencies are rallying as well, with the Russian ruble up 1.1% at 63.1506 per dollar and the Norwegian krone up 0.8% at 8.0466 per dollar around 2:47 p.m. ET."

http://www.businessinsider.com/oil-prices-after-opec-meeting-2016-9

[tonyt53]

3. Looks like it is time to shut down all of our oil exports from the US.

Isn't the claim that more drilling here keeps costs lower at the pump for Americans? We started exporting oil early this year for the first time since the 70's. Shut it down.