It would be the first time in eight years that the oil cartel would lower output. The agreement was reached on Wednesday at a meeting in Algiers.
Oil prices surged more than 5% in reaction.
A global glut of oil supply caused oil prices to crash over the last two years. And OPEC nations, led by Saudi Arabia, have refused to lower production until now.
Under the agreement, OPEC oil production is expected to be reduced to a range of 32.5 to 33 million barrels of oil per day from 33.4 million. Saudi Arabia, the largest oil producer, is expected to give up 350,000 barrels a day, according to a senior OPEC source quoting the final proposal. Other OPEC nations are expected to lower production too, though more details were not immediately clear.
Three countries are exempted from the production cuts: Iran, Nigeria and Libya. Economic sanctions were lifted on Iran earlier this year, and Libya and Nigeria have had some of their oil facilities damaged by terrorist attacks in recent months.
Oil prices were as high as $100 a barrel in mid-2014. But the global oversupply caused prices to plunge to as low as $26 a barrel in February. The volatility in oil caused stock markets to dive at the beginning of 2016.
In recent months, oil prices have rebounded a bit and oil is currently hovering near $47 a barrel.
http://money.cnn.com/2016/09/28/investing/oil-surges-after-opec-informal-meeting/index.html

good to know..FTC ,
first time .

Good way to go... Maybe December, OYEL price fit reduce to Goodluck price (#97naira) or Yaradua's price (#56naira).


If nt na Buhari price (#145naira)

That's the way to go. That will definitely push the crude price up. Atleast it will help Nigeria make some more income to fund our budget and spend our way out of the recession. My worries is now is, will they still cut our own supply too? Cos we've not in recent times been able to meet our supply quota due to myriads of factors. We can only pray government look into the Niger Delta issues and see how it could be resolved so we can reap maximum benefit from this move by OPEC.

Good news for NAIJA

I thought they said it's because the oil prices fell is the reason our economy is bad?

Now oil prices have improved, the efcc claimed to have recovered 20 trillion from pdp and saved 6 trillion from TSA...why is our economy still bad?

Great

jaytime:
That's the way to go

smile go soon come.

Oyeh prices would hit above 100 before 2019.

And let's see what happens next.

I like to compare on levelled grounds.

Naira still won't rise

It seems light is gradually coming out of the tunnel, if only the NDA and other militant group can stop disrupting oil production...

Good

This is just a short term remedy..
We need to diversify the economy! This are just pointers the oil will soon be a useless commodity..
We need some radical shift in country's earnings! Unless titanic will just be a child's play

Abeg lower the output....although, Nigeria has been forced to lower output by the activities of those criminals called militants

I hope this will benefit our country

I hope this won't stop diversification of Nigeria economy

My optimism will pay off eventually

Good news finally

Buhari should leave ND oil alone and focus on exploring other options.
The 5%ters need some break.

If my people who are called by a name shall shut their ears to the mention of oil and restructure Nigeria and till their land, then will I know that they are due for a change and take them serious. Until then, I quit.

its a welcome development for Nigeria, I think this should affect us positively.

stevepee42:
Good news for NAIJA

It's actually good news for the looters in government.

Any need for that? Nigeria is helping the oil producing country we are far less producing the daily production limit Avengers no gree us produce

For the records our production quota is 2million barrels per day. We are currently producing 1.2mil bopd due to vandalism of our facilities.
We would benefit marginally if the price goes up as expected but the real deal for us is ensuring peace in the Niger Delta so we can grow our production.
If we meet our quota which by the way our budget is benchmarked against, we could strive to do more and feed our refineries so we rely less on fuel import which stifles our foreign reserve.
It's time to wake up from our slumber.

Silverstars:
Naira still won't rise

I thought you said

nairaland won't ruse

Go and appease the militants so as to bring a stop to the destruction of oil platforms, then I can celebrate.

OPEC has finally woken up..it wouldn't have gotten to this stage if they had reacted this way and mainly was caused by Saudi Arabia non compliance .

Interesting...

raker300:
I thought they said it's because the oil prices fell is the reason our economy is bad?

Now oil prices have improved, the efcc claimed to have recovered 20 trillion from pdp and saved 6 trillion from TSA...why is our economy still bad?

Sometimes stop thinking with your Anus and watch CNN sometimes. Opec and member countries excluding Iran, I think just agreed to the output reduction yesterday and you're already shouting efcc today

Smh

the competitors in the oil market (shale oil) will be the ones to benefit from this production cut...

Good news I hope those miscreants would continue to sabotage the oil facilities in the light of this new agreement.