Non-Opec Countries Agree to Cut Oil Output

Image result for Non-Opec countries agree to cut oil output11 oil-producing nations, who are not part of the Opec oil cartel, have agreed to slash their output in a bid to increase prices. A representative from the group of countries that includes Russia mentioned on

Saturday that they will reduce the yield by around six hundred thousand barrels per day.

Last month, Opec unveiled that it would be cutting its own produce to ease the flooded global market. The concession was made at a conference at the Vienna headquarters. Opec member states are already conforming to a supply reduction of one million barrels a day. Opec also urged non-member states to follow suit, and Russia had indicated it was willing to co-operate.

The two strategic initiatives come after years of despondent oil prices, which have reduced by more than half since 2014, due to the global market glut. Non-Opec states attending the above mentioned assembly were Mexico, Oman, Azerbaijan, Sudan and Bahrain. Opec will hold its next conference on May 2017 to assess the deal’s progression.

Reference

http://www.bbc.com/news/business-38276667

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