The Organization of the Petroleum Exporting Countries (OPEC) intergovernmental organization of 14 nations, agreed on Monday to maintain its limits on oil production until 2020
Zoom out: As per Finimize, At the moment demand for oil is declining: there is less economic growth which means less need for oil to make and transport stuff. Plus, the US is pumping out petroleum like nobody’s business – it’s now the world’s biggest producer.
Why it matters
OPEC members can better plan their national spending since now roughly know what income to expect from Oil exportation, although oil’s price can quickly change.
Global Oil supply has been affected by US sanctions on Venezuela and Iran – the world’s sixth-largest oil producer – along with conflict in Libya. A higher oil price makes things more expensive for companies and countries that rely on oil or oil-based fuel, and increased production costs are often passed down to the consumer. (tweet this)