OPEC decided to cut oil production on 30 November 2016 at a meeting in Vienna - its first action to cut output since 2008. The cuts are to take effect from January 2017.
Saudi Arabia will have the greatest reduction in daily production, by 486 thousand barrels per day (b/d).
Indonesia suspended its membership and will not participate.
The dispute arose not over the need for cuts, but the size of the output cuts requested of Indonesia.
Negotiating for Indonesia was ex-Citi MD and Mineral and Energy Resources Minister (since October 2016) Singapore-born Ignasius Jonan (who also formerly served as Minister for Transportation).
Saudi are followed by Iraq who will cut production by 210 tb/d, followed by the next biggest producer UAE, by 139 tb/d.
OPEC plans to hold talks with non OPEC producers on December 9th.
The announcement sent oil futures as well as oil stocks rallying. Royal Dutch Shell (RDBS.L) shares were up 2.8% to 2178 on 1 December 2016. BP (BP.L) was up 2.3% to 470. The stocks fell prior to the OPEC announcement on concerns that the cartel would fail to limit output.
Saudi Arabia will have the greatest reduction in daily production, by 486 thousand barrels per day (b/d).
Indonesia suspended its membership and will not participate.
The dispute arose not over the need for cuts, but the size of the output cuts requested of Indonesia.
Negotiating for Indonesia was ex-Citi MD and Mineral and Energy Resources Minister (since October 2016) Singapore-born Ignasius Jonan (who also formerly served as Minister for Transportation).
Saudi are followed by Iraq who will cut production by 210 tb/d, followed by the next biggest producer UAE, by 139 tb/d.
OPEC plans to hold talks with non OPEC producers on December 9th.
The announcement sent oil futures as well as oil stocks rallying. Royal Dutch Shell (RDBS.L) shares were up 2.8% to 2178 on 1 December 2016. BP (BP.L) was up 2.3% to 470. The stocks fell prior to the OPEC announcement on concerns that the cartel would fail to limit output.
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