There was a surprise agreement amongst members of OPEC as they rose from the much awaited meeting in Austria with a resolution to find lasting solution to the crash in crude oil price by cutting production output by 25 per cent,
In that regard, it is to cut 1.32 million barrels a day from its present output of 35.6 million barrels per day.
This will see members maintain low production level aimed at shoring up the fallen price as from next couple of weeks.
News from Algiers, the venue of the meeting said Russia, a non member country played very crucial role in ensuring that all vexed issues were not played up as it also informed the oil cartel that it was ready to reduce its oil output by 300,000 barrels from its current 10 million barrels a day.
But three counties were said to have withdrawn from the OPEC membership instead of sharing any cut, though OPEC officials refused to name the countries involved.
However sources name Indonesia as among such countries,while Iran is said to be threatening similar action.
The price of crude has remained stable since the announcement of positive result of the meeting. The international benchmark was up $3.48, or 7.4 percent, at $49.86 a barrel.
Reports say US is better off having OPEC differences that could continue to lead to poor pricing of crude, though its officials said they look forward to the body putting its house in order.
The flood of supply from non-OPEC countries like the U.S. and Russia has seen crude falling in price from over $100 a barrel in June of 2014 to $40 in 2016.
One of the pending issues is still the rivalry between Saudi Arabia and Iran, over certain questions on regional influence,
Ripples Nigeria…without borders, without fears
- NLC demands reversal of fuel price, electricity tariff hike - July 2, 2020
- Nigerian govt reveals findings on Madagascar’s COVID Organics - July 2, 2020
- JUST IN: Kano govt lifts COVID-19 lockdown - July 2, 2020