How OPEC Math Arrives at Its 800,000-Barrel Cutback Share
- Organization says members to cut by more than 2.5 percent
- Supply cuts will help to avoid a glut from building in 2019
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Photographer: Andrey Rudakov/Bloomberg
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OPEC’s lack of transparency on how much its nations are supposed to be pumping has become almost infamous among oil traders, but on Friday the group eventually managed to provide a relatively comprehensible idea of its plans.
After its meeting in Vienna, the group announced a 1.2 million barrel-a-day reduction for the Organization of Petroleum Exporting Countries and non-member allies such as Russia. The group itself will restrict 800,000 barrels a day and the others will remove 400,000 on top.