Like all good things, the current run of declining fuel prices appears set to end as OPEC, the grouping of 14 major oil exporting countries, on Friday stitched a last-minute deal to throttle output by 1.2 million barrels per day (bpd), or a quarter of India’s daily consumption.
But several imponderables such as the fault lines within OPEC, rising exports from the US and the level of compliance by Russia – the non-OPEC producer wielding considerable influence over the global oil market – are expected to moderate the pinch at the pumps for fuel consumers.
Agency reports from Vienna, where the energy ministers from the grouping and its outside partners are assembled, said OPEC members will pare production by 80,000 bpd and its partners by 40,000 bpd from January. The deal will be reviewed in April.
Global oil prices jumped 4% on the news as the market saw a clear roadmap after the grouping had appeared to be faltering on Thursday. A clearer picture will emerge when the market opens on Monday and more details are known. Read More