The price of oil, the consequences of the Agreement


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In September, oil prices were volatile as in October too. In particular, Brent Crude North Sea opened at $47.90/b and closed at $51.36/b, while West Texas Intermediate opened at $46.93/b and closed at $49.36/b. At the time of writing, oil prices were on the rise in the wake of the agreement achieved between the OPEC Members (exempting Libya, Nigeria and the suspended Indonesia). In particular, on November 30th, in Vienna, the Organization of the Petroleum Exporting Countries decided the first cut production deal in 8 years according to which, the new Organization output ceiling will stand at 32.5 million b/d, while non-OPEC producers promised to slash their extraction by 600 thousand b/d.

On November 11th, both oil qualities reached their lowest since August 10 – specifically, the European benchmark trading at $44.52/b, while the American reference, quoting $43.14/b – due to the following reasons: