RE:From David on LSE
If OPEC follows through we will see $2.00 by year end. And it also would mean that Ithaca managements timing of first oil is almost perfect. Will Russia join them in November? Time will tell.
OPEC reaches first deal to cut oil output since 2008 - sources
Reuters –
ALGIERS (Reuters) - OPEC agreed on Wednesday to cut its oil output for the first time since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.
Two sources in the Organization of the Petroleum Exporting Countries said the group would reduce output to 32.5 million barrels per day from current production of 33.24 million bpd.
How much each country will produce is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia, sources said.
Oil prices (LCOc1) jumped more than 5 percent to trade above $48 per barrel as of 1830 GMT after the outcome of OPEC's informal meeting in Algeria took traders by surprise. Still, many said they wanted to see the details of the deal.
"We don’t know yet who’s going to produce what. I want to hear from the mouth of the Iranian oil minister that he’s not going to go back to pre-sanction levels. For the Saudis, it just goes against the conventional wisdom of what they’ve been saying," said Jeff Quigley, director of energy markets at Houston-based Stratas Advisors.
Saudi Energy Minister Khalid al-Falih said on Tuesday that Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.