Crude Oil Rises in Anticipation of OPEC Production Cuts

Oil prices were rising with less than a week until OPEC implements its first production cut in 8 years.
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Oil prices were rising with less than a week until OPEC implements its first production cut in eight years. Global benchmark Brent crude was up to $55 a barrel, while West Texas Intermediate for February delivery was trading at around $53 a barrel on Tuesday morning. OPEC member nations and 11 non-OPEC producers, including Russia, agreed to curb production by about 1.8 million barrels a day, beginning Jan. 1, 2017. Saudi Arabia is incurring the biggest cut, reducing production by 486,000 barrels a day. Meanwhile, Russia has promised to cut its output by 300,000 barrels a day. Reuters reports the Russian oil producer Gazprom Neft trimmed its oil output to 4.5% to 5% next year, which is less than it had intended before it joined the OPEC agreement.

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