Oil Edges Above $50 As OPEC Seeks Non-OPEC Output Cut

Oil

 

Oil prices soared on Friday afternoon, December 9, hitting above $50 per barrel ahead of the Non-OPEC producer meeting which is expected to hold Saturday.
A meeting with non-OPEC countries is billed for Saturday, where they will hash out the details of the promised 600,000 barrels per day of production cuts.
Russia alone promised to cut 300,000 barrels per day, although it appears only willing to reduce gradually over the first half of 2017. OPEC invited 14 non-OPEC countries to the meeting in Vienna, but only five so far have said they will attend – Russia, Azerbaijan, Kazakhstan, Oman and Mexico.
One OPEC source told Reuters that the stated cuts of 600,000 barrels per day might actually turn out to be just 500,000 barrels per day, an ominous sign that the results could be less impressive than previously thought. So far, aside from Russia, only Oman has expressed a willingness to cut.

Oil prices fluctuated this week on the hopes and fears of whether or not OPEC will be able to fully implement its historic deal, as well as the uncertainty over the additional non-OPEC cuts.

Still, WTI and Brent mostly held onto their gains that accrued from the deal, with both benchmarks seemingly holding safely above $50 per barrel.

 

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