OPEC Agreed To Cut Oil Production
New deal predicted to hike gas prices.
The Short of It:
Oil prices have been rising since Wednesday's the Opec group of oil producing nations agreed to cut output.
The Longer Version of It:
OPEC is the group of 14 countries (including Saudi Arabia, Iran, Venezuela) that produce about a third of the world's oil. In recent years, their profits have dropped due in part to fracking in the US creating quite a bit of supply without demand. Wealthy countries such as Saudi Arabia have been able to see the tough times through, but countries whose economies depend on higher oil profits such as Venezuela and Nigeria have been struggling. OPEC have rejected cutting oil production for years, in part because Saudi Arabia and Iran have wanted to ride it out rather than risk giving up market share to the US and Russia. Now that prices ar dropping, the waiting game's over.
OPEC have said that they plan to cut oil production by more than a million barrels a day starting next year. Now Russia is jumping on the bandwagon, which isn't bad news for countries like Venezuela, who could need a break after years of economic troubles. Who it's not a great news for? You. This just in, gas prices could be climbing.
This is all still up in the air on whether this deal will stick.
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