OPEC Proposes Massive Oil Production Cuts... But the Deal Depends on Russia
Only a few days after reports that Saudi Arabia was planning to propose a 1 million barrel per day reduction in crude oil output to its OPEC counterparts, the group, which controls more than one-third of the world's oil, has now agreed on a massive 1.5 million barrel production cut.
Unlike the reaction to the Saudi proposal, which sent crude oil prices up more than 4%, oil markets are not viewing today's news nearly so favorably. At this writing, both Brent and West Texas Intermediate crude futures are down slightly at $50.24 and $46.12 per barrel at recent prices.
Image source: Getty Images.
Source Fool.com
