OPEC has agreed to cut its oil output for the first time since 2008. The major oil producing nations struck a preliminary deal at talks in Algeria. Brent crude the international benchmark for oil, rose almost 6% to nearly $49 a barrel on the news.
The move sent US stocks rising with energy shares pushing the way. A slump in oil prices has caused steep earnings losses for energy producers for several quarters. Other markets are likely to rally likewise
Asian stocks gained on Thursday in tandem with an oil price rally after OPEC members agreed to curb… https://t.co/EjV5OStuyr #business— Nuusie Business (@Nuusie_Business) September 29, 2016
Past attempts to reach an output deal have been complicated by political rivalry between Iran and Saudi Arabia. Riyadh says it will cut if other oil producers follow suit. Iran had argued exemption until its production recovers after the lifting of EU sanctions.
How much each country will produce is to be decided at the next formal meeting in November.
Why OPEC Cut Should Mean Higher Oil, Higher Stock Market: Oil popped more than $3 from the lows of the … https://t.co/VBd9uCybCQ #tech— Mike Patel (@TheMehulPatel) September 29, 2016
