The Organization of Petroleum Exporting Countries (OPEC) has agreed to slash output by 2.2 million barrels a day from next month in a bid to stabilize oil prices. Now all eyes are on member states to see if they comply with the agreed cuts.
Plans by the Organization of Petroleum Exporting Countries (OPEC) for an output cut of two million barrels a day may count with the additional support of a Russian daily production cut of 320,000 barrels.
Forecasts of a slowdown in oil production have driven the price of crude oil back over the $50 mark in New York for the first time in two weeks. OPEC members meet in Algeria on Wednesday to decide on a likely output cut.
The Organisation of Petroleum Exporting Countries (Opec) left its output quota unchanged over the weekend, but will opt for a potentially major cut next month if the market is deemed to be deteriorating.
Gathered to discuss tumbling oil prices, OPEC ministers ruled out further output cuts before next month as Saudi Arabia and its Gulf allies demanded tighter adherence to restraints agreed upon in previous meetings.
The price of oil has fallen from a record high of nearly $150 a barrel to less than half the price. In the short term this is good for consumers, but what are the long term consequences in the context of the emerging global recession?
In response to sliding oil prices and amid an impending global economic slowdown, the world's leading oil producers have decided to cut their oil output by 1.5 million barrels per day in an emergency meeting in Vienna on Friday.