Oil Prices Rise Sharply Following OPEC Announcement

OPEC announced a cut in output, causing changes in oil prices.

oil rig at sunset
(Image credit: Getty Images)

Following an unexpected announcement by OPEC+ producers to cut output, oil prices have surged. The global benchmark, Brent crude, had a 5.31% increase in cost, rising to $84.13 a barrel. The U.S. benchmark, WTI, surged to $79.83 a barrel, a 5.48% increase.

In total, cutbacks in production will be over one million barrels a day as a “precautionary measure aimed at supporting the stability of the oil market,” says one Saudi energy ministry official, according to Al Jazeera. Cutbacks include 500,000 barrels a day cut by Saudi Arabia, 211,000 barrels a day cut by Iraq, 144,000 barrels cut by the United Arab Emirates and 128,000 barrels cut by Kuwait. Additionally, Russia’s cut of half a million barrels per day would extend through the end of the year. 

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.