The cold season is well on its way! Have you stocked up on oil? The Organization of Petroleum Exporting Countries (OPEC) is working to strike a deal to cut oil output that will boost prices. For those of you who don’t know what OPEC is, their objective is to coordinate and unify petroleum policies in order to secure prices for producers. The nations included in OPEC are as follows:
With their first production cut in 8 years, crude oil prices are starting to soar. By pushing their inventory down (OPEC is reducing output by a whopping 1.2 million barrels a day by January), predictions include an overall cut in production by 32.5 million barrels each month. OPEC is responsible for around 40% of the global oil supply, with their sudden change in heart of cutting oil production coming quickly and full force.
Taken from nasdaq.com, you can see below how quickly oil prices are beginning to rise.
So unfortunately, your morning commute to work might become a little more expensive, and we suggest stocking up now if oil is the method you use to heat your home. On the plus side, many of the 12 OPEC countries haven’t always kept their promises, so will these high prices stick? We shall soon find out,