Oil: new price rises as OPEC decides to cut output

Oil: new price rises as OPEC decides to cut output

Editorial Staff
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Oil prices rose to new levels on October 30, 2017, following the decision by the Organization of Petroleum Exporting Countries (OPEC) to cut output in November 2017. The news was widely reported in the U.S. media. On October 27, 2017, Brent crude hit USD 60 per barrel for the first time in several years as a result of OPEC's decision to balance the market's current supply glut by curbing the November output. The decision was confirmed by Saudi Arabia over the weekend of October 28-29. On October 30, United Arab Emirates Energy Minister Suhail al-Mazroui, while expressing support for extending the deal, postponed the official decision until the next OPEC meeting in November 2017. The price gap between Brent (up by US cents 0.35) and West Texas Intermediate -WTI- (up by US cents 0.2) is continuing to drive up U.S. crude exports and could undermine OPEC's efforts. According to the Chicago-based Price Futures Group if it were not for U.S. exports, prices per barrel would be higher than they are.