OPEC Agrees to Cut Production and Oil Soars

Apparently, OPEC ain’t quite so dead just yet. The oil cartel just surprised a lot of folks, including me, by overcoming a mess of internal squabbling and agreeing to cut back oil production.

The move is intended to boost the economies of the big oil producers which have been shattered by lower oil prices. Russia’s economy, for example, has been in a tailspin. Venezuela’s is reaching crisis levels.

On the other hand, the production cut is a big help for U.S.-based shale drillers. Right now, crude oil is up about 7% on the day. The Energy Sector ETF is up over 4%. Halliburton is up more than 10%.

Posted by on November 30th, 2016 at 10:48 am

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