Last week OPEC, Russia and other oil-producing nations agreed to additional oil production cuts in an effort to support oil prices. Following the 177th Meeting of the OPEC Conference in Vienna, OPEC said it would increase its production cuts by another 500,000 barrels per day (BPD).
This brings the total production cuts from OPEC and its allies to 1.7 million BPD. This continues the strategy adopted in late 2016 of limiting production. That decision followed what was ultimately a disastrous decision at OPEC’s November 2014 meeting to declare a price war on U.S. shale producers.
