December 7, 2019 - 6:39 AM EST
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Oil News: OPEC Is Cutting Its Production in a Bid to Boost Oil Prices

OPEC members, along with several non-member allies, agreed this week to reduce their oil supplies by an additional 500,000 barrels per day (BPD) starting in January. This cut is on top of an output curb of 1.2 million BPD the group agreed to in October of 2018.

This is a positive development for the oil market as it will help keep supplies at or below demand, which has been growing at a slower pace because of the trade war between the U.S. and China. The output reduction should help burn off some of the excess oil that has been piling up in storage as a result of fast-paced production growth in the U.S. As such, it could provide a further boost to crude prices, which have already rallied about 7% this week.

Image source: Getty Images.

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Source: Motley Fool (December 7, 2019 - 6:39 AM EST)

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