A deal between OPEC, Russia and its allies will likely go through soon as talks continue today. The deal will be to cut the production of oil in the countries that make up OPEC, which include the de facto leader Saudi Arabia. OPEC, the Organisation of the Petrolium Exporting Countries, is made up of 15 countries, and the deal also includes several others including the major exporter Russia. This deal will likely raise the price of oil worldwide, much to the disappointment of President Trump, who wanted the deal to halt in order to boost the US and world economies with low oil prices.
In order to maintain a demand for oil worldwide, which has been in a surplus recently, the deal is meant to keep the price of crude oil level. While most countries engaging in the deal have come to an agreement, talks are still in session as to how much production will be cut. OPEC countries and their allies will cut 0.8 barrels per day from their production, and non-OPEC members will cut 0.4 barrels per day. It is still unclear how much this will affect the world economies after the deal goes through, but as of now Wall Street analysts are expecting the prices of shares in oil producers to go up, which have been down overall.
Many of the countries in OPEC are still hashing out deals, and Russia just recently came to the table after much speculation, agreeing to cut production. Trump will most likely be addressing the deal, as he has also stated concerns about Iran’s involvement. Iran, who initially wanted exemptions from the production cuts, also just came forward in agreement to the deal despite having already seen less production due to US sanctions.
