The Organisation of Petroleum Exporting Countries (OPEC) has agreed to the very first oil output cut in eight years.

The oil cartel, which is currently meeting in Vienna, Austria, has not officially confirmed the deal, but news agencies on ground, and delegates who are party to the deal, say an agreement is already in place.

According to Reuters, Saudi Arabia, the biggest OPEC producer, agreed to take a big hit, to accommodate Iraq’s reluctance, while Iran has agreed to a cut.

Bloomberg is also reporting that the cartel agreed to cut production by 1.2 million barrels per day, with hopes that oil will trade above $50 a barrel for the days ahead.

Speaking at the opening of the 171st ordinary meeting, Mohammed Bin Saleh Al-Sada, OPEC conference president, expressed optimism that the deal would become a reality, considering work done since the Algiers accord was consummated.

“As the history of OPEC has shown and as many of our predecessors will no doubt acknowledge, the road to success is not always easy to navigate,” Al-Sada said.

“However, as we have shown over the past few months, with hard work, drive and commitment from all of us, we can overcome challenges and obstacles through cooperation and compromise.

“I feel we have already taken great steps to shape a fair and common understanding among us all. And I have the sense that everyone here remains committed to ensuring we find the solutions needed to implement the ‘Algiers Accord’.

“We all have a common goal of developing a lasting solution that brings forward the rebalancing process, reduces the length of the downturn, lessens volatility and stabilizes the market.”

OPEC is expected to address a press conference by 4pm Nigerian time.


Source:
http://www.ajayiwrites.com/2016/11/opec-agrees-to-first-output-cut-in-8.html

We are getting there...


lalasticlala, Seun

Reduction of about 1.2 million barrels per day. The production cut is exclusive of Nigeria and Libya. The deal has already seen the price of crude oil rise above 50 dollars. 55-60 dollars is the forecasted equilibrium. But the deal would only be in place for 6 months.

Happy New Month everyone in the house

Good news for Nigeria,
God has answered our prayers

Hope they won't mismanage the funds.

Surely they would still be some Judas who will go against this agreement to sell below the require price. There will surely be resistance from external force owing to the policy of opec.

Let forget that I am a Nigerian. Sincerely, I will feel bad if there's hoarding of resources against the well being of my country. This agreement will favour those in opec, but about non oil producing countries. Do you think they will look t this agreement without any retaliation?

GudluckIBB:
Good news for Nigeria,
God has answered our prayers

Hope they won't mismanage the funds.

lawal will have more funds to cut grass to old trafford standard

NDA its been a while
What do you guys have to say ?

Let's work together to build a country that we'll all be proud of.

Its not about APC or PDP, not about the elites or the politicians, its about us the true nigerians(the masses)cos its the masses that always bear the brunt and the consequences of our actions and inactions

I hope it hikes the price of the gad dam oil.

http://chrisakuneme.com/2016/11/28/how-to-withdraw-fund-bitcoin-in-nigeria/

Nice move.

sign of good days ahead.

Iyaf hussle front page, now iyaf no know what to write

K

this just spoilt some people's day, spoilt their new month. some people would be squealing in pains after hearing this news.

Will Nigeria benefit from this? I don't think so, except we fix the problems in the niger delta

Above $50 per barrel will be good be for Nigeria

Now is when we need to seriously curtail ugly events in the NIGER DELTA CREEKS

obiageIi:
Will Nigeria benefit from this? I don't think so, except we fix the problems in the niger delta

My point exactly. The only reason we'll benefit from this is if our brothers in the creek stop bombing. And the only reason we are not considered for production cost is because the militants have done the cutting for us since last year.

Trying to force the market price to go up is a good and calculated move, not until Europe and the west find an alternative to Black energy, oh wait! That's the pure energy program!.
But u think that scheme may have just suffered a major set back in research and delivery in a commercial state with Trump at the helm of affairs in the West, considering being crude and conventional.
OPEC just had a get away free card for four years to monopolize the market at their discretion. Cut the supply, increase the demand tactics.
We are not even considered on that list on cutting down production. Not with the volume militants have cut down for us already.

ddippset:
this just spoilt some people's day, spoilt their new month. some people would be squealing in pains after hearing this news.

You are on point.... but I don't & will never get cutting off one's nose to spite one's face... Very myopic & disgusting..

Only if the Militants will allow Nigeria reap from this.

Any serious minded country should know that absolutely depending on crude oil as source of revenue at this time implies disaster. Gone are the days where OPEC has authority. With non-opec countries like Russia, Canada and USA having significant oil reserves, if OPEC cut production in hope of expecting oil price to go up, I'm sorry to say these non-opec countries will fill up the cut in production. Unless there's an agreement between OPEC and non-OPEC to cut production (which I doubt will happen) oil price will likely not get to $70 per barrel again. Wise countries like UAE have invested the money they made from crude oil over the years to build an outstanding tourism sector. But Nigeria government wasted everything. Nothing to show for the money we generated from crude oil for decades

obiageIi:
Will Nigeria benefit from this? I don't think so, except we fix the problems in the niger delta

Those Niger Delta bombing merchants wiill recieve this news wirh more joy than Nigeria as a whole...i forssee serious bombing in coming weeks..

Bragados and hullabalu.

Who says election in the USA don't make impacts in things?? This might not have happened if Hilary had won tho

good

ollah1:
Who says election in the USA don't make impacts in things?? This might not have happened if Hilary had won tho

true...her election as president would have created the biggest conspiracies ever.

Saudi,qatar,uae and bahrain agreed with opec because obama/clinton wont be the next president

Good news.

Happy new month Nairalanders jooor.May this new month favour us ooo.

A welcomed development. I just hope this'll go a long way in stabilizing our dwindling economy.

Good news

Zombies won't like this