Experts pay your attention to the fact this is the first time since 2008 OPEC cut their production of crude oil. Over the last couple of years, even despite declining oil prices, they have been refusing to implement any production cuts. On the contrary it, it has been all about increasing their production slowly but surely.
To be more specific, the daily production quotas within the scope of OPEC is going to be cut from 33,24 million barrels a day down to 32,5 million barrels a day. At the same time, OPEC is determined to urge other major oil producers to hold their horses as well.
It should be noted that OPEC and Russia are not the only oil nations suffering from low oil prices. Every single oil producer out there doesn’t mind selling crude oil at a much higher prices. When the prices are low, those oil nations have to spend their reserves, which undermines the economic and financial situation in those countries.
As we have mentioned, OPEC’s decision to cut their oil production resulted in a strong in the global market of crude oil. Yesterday alone, the price gained 5% in a matter of hours.