…It’s OPEC’s first output cut since 2008
30 November 2016, Sweetcrude, Vienna, Austria – After what seemed an impossibility, the Organisation of the Petroleum Exporting Countries, OPEC, agreed Wednesday to cut its output by 1.2 million barrels per day.
It is the first such deal since 2008.
Ministers meeting at the organisation’s 171st ministerial meeting in Vienna, Austria reached the deal after Saudi Arabia, OPEC’s power house, softened its stance on Iran.
Indeed, the meeting appeared headed for a deadlock given the bickering between Iran, Arabia and Iraq over how to share the burden of the production cut.
OPEC will reduce production by 1.2 million barrels a day to 32.5 million a day.. The development indicated Saudi Arabia’s acceptance that Iran, as a special case, can raise production.
Iran, prior to the meeting, had insisted that it should be allowed to restore output to pre-sanctions levels, while Iraq is questioning the secondary sources’ output estimates on which OPEC bases its production decisions, and which is the basis for the planned production cut.
It was not certain how exactly these issues were resolved but SweetcrudeReports gathered that they have been resolves all the same.