The much-anticipated OPEC and non-OPEC agreed oil production cut had at last come in to play on Thursday, the 3rd of January, 2019, as crude oil price seemed to be well supported. Earlier on Thursday, the OPEC kingpin Saudi, had announced that they had cut outputs by 4,20,000 barrels per day on December and the news came as a cerulean comely for several investors, as further gains appeared to be on the card.
Alongside Saudi Arabia, the Iran and Libya had also posted an involuntary decline in the production, altogether reviving the oil market momentum. While this report is being prepared, the US crude was residing at $47.11 per barrel and the Brent crude had breached its initial resistance level of $55.50 per barrel.
An upswing for US crude above $50s appeared to be on the house of crudes, as a production cut of 1.2 million barrels per day had already been implemented from January 1st, which was agreed over the recent meeting between OPEC and non-OPEC nations, on December 7th evening, in Vienna, Austria. As an aftermath, the Canadian Dollar posted a 0.5 percent gain against American Dollar, as Canada had been the home ground of world’s largest oil refineries since as early as late 1990s.
Alongside, a few north-European currencies including Norwegian Krona had also posted gains against US dollar, apart from Euro, Japanese Yen and Australian dollar. While being asked about the immediate market impact of output cut, an OPEC delegate said, “Naturally, it will adjust from now on.
I hope the market will recover soon.”