Optimism builds as non-OPEC members to discuss oil production cuts

Optimism builds as non-OPEC members to discuss oil production cuts

The global oil industry has received a welcome boost with prices settling at over US$50 a barrel, in response to a growing belief that non-OPEC members will agree to slash production figures.

Brent crude reached $53.89 a barrel, up 89 cents (1.7%), whilst US light, sweet crude peaked at $50.84 a barrel, an increase of $1.07 (2.2%).

This news follows OPEC’s recent announcement of a deal being struck by its members to cut production by 1.2 million barrels per day (BPD) in the first half of 2017.

Leading oil producers will now meet in Vienna on Saturday to discuss whether non-OPEC members will agree to follow OPEC nations in reducing their production levels.

Russia has already indicated that it is prepared to slash production by 300,000 BPD, while Azerbaijan has also pledged to negotiate a production cut.

President of Iran, Hassan Rouhani said yesterday: “Close cooperation among OPEC and non-OPEC countries is key to stabilising the oil prices and their increase.”

@RGNonline