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Finally the OPEC agrees to cut down oil production

For the first time in eight years, the Organization of the Petroleum Exporting Countries (aka OPEC) agreed to cut oil output, coming down to 32.5 million from 33 million barrels per day. There had been increasing pressure on the group of 14 oil producing countries to reduce production after their oil profits started falling a few years back. Frenemies Saudi Arabia and Iran cooperated on this decision and the Iranian oil minister called it a smart consensus:

“Opec made an exceptional decision."

The Organization of the Petroleum Exporting Countries is made up of countries who, together, produce more than a third of the world's oil. With the U.S. increasing oil production and the recent increase in fracking operations, the market has been flooded, literally, with too much oil. OPEC countries' economies are heavily dependent on oil revenues, making this compromise a contentious one.

This agreement is really great news for Venezuela where the falling economy can get some relief.

Oil prices jumped up after the announcement - the first time in five months.

How much will each country actually produce will be decided in the next formal meeting in November.

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Finally the OPEC agrees to cut down oil production

Anugya Chitransh

Anugya is originally from New Delhi, India. She studied journalism at the CUNY Graduate School of Journalism in New York, graduating with a master's in international reporting. She plans to travel one day to all the places she reads about. She likes reading fiction, pop music, and going to the beach, but absolutely hates anyone mangling or shortening her name (which is quite common). She binge watches Korean dramas and anime series. She's a freelance writer and has produced content that has appeared in NBC, The Times of India, Time Out Delhi, and other publications.

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