OPEC Proceeds With Cutbacks

OPEC, which pumps a third of the world’s oil, has agreed to stick with their February agreement to cut oil production by 1 million barrels a day (4%), according to the Associated Press. Although this agreement is likely to drive crude prices up, it appears that OPEC members will continue to step up production to capitalize on soaring crude prices. Excluding Iraq, OPEC is currently exceeding its quota

OPEC, which pumps a third of the world’s oil, has agreed to stick with their February agreement to cut oil production by 1 million barrels a day (4%), according to the Associated Press.

Although this agreement is likely to drive crude prices up, it appears that OPEC members will continue to step up production to capitalize on soaring crude prices. Excluding Iraq, OPEC is currently exceeding its quota by an estimated 1.5-million barrels, according to the Associated Press.

Still, in the wake of the agreement, it appears unlikely that consumers will see any long stretch of relief in prices at the pump in the foreseeable future.

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