In the past week, oil prices have jumped more than 10 percent to over $50 a barrel after OPEC and Russia agreed to cut supply in an effort to prop up prices. The 14-nation OPEC group agreed to cut production by as much as 1.2 million barrels per day, to 32.5 million. This cut far exceeded expectations while most analysts were skeptical a deal would even be reached. It remains to be seen whether oil prices will climb to the forecasted $60/barrel and how motorists will be affected at the pumps. OPEC’s three leading producers, namely Saudi Arabia, Iraq and Iran, were able to put their differences aside and close a deal which is the first of its kind since 2008. Kuwait, Venezuela and Algeria have agreed to monitor compliance with the OPEC agreement. All eyes are on this agreement which begs the question what does this mean for US production? One way or another, the fact remains brent surged to its highest level in a year!
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