Why OPEC Production Cuts Are Good News for America

[rangerrebew]

Why OPEC Production Cuts Are Good News for America
[1]
Main Image

OPEC has just delivered a major windfall to American industry.
Anthony Fensom [2]

OPEC may have just saved America’s energy revolution.

The oil cartel’s December 10 announcement that it had struck a landmark deal with Russia and other major non-OPEC oil producers to curb production sent prices soaring. Brent crude gained more than 4 percent to $56 a barrel and U.S. West Texas Intermediate climbed to nearly $54 after the first global production cut in fifteen years between countries accounting for roughly 60 percent of global output.

The deal, which pledged to curb production by 558 thousand barrels [3] a day, followed an agreement made two weeks earlier between OPEC members to slash 1.2 million barrels a day starting in January 2017.

Source URL (retrieved on December 18, 2016): http://nationalinterest.org/blog/the-buzz/why-opec-production-cuts-are-good-news-america-18768

Links:

[IsailedawayfromFR]

OPEC is no longer controlling the oil market as in the past.

It is more market-based, due to the tremendous influence of technology that has driven shale producers to exploit heretofore non-commercial horizons.

That will not go away, no matter what OPEC's moves are.

As consumers, we are living in a great time to have cheap, plentiful oil available.

As Americans, we will have the added boom of increased value from our bountiful unconventional resources to extract and either use or sell.