Four of the world’s largest oil producers have agreed to freeze crude oil production levels. Saudi Arabia, Russia, Venezuela, and Qatar have all agreed that output should remain at levels produced in January, but only on the proviso that other major exporters follow suit.
The price of Brent crude, which had already seen a 6% surge on the news that the meeting was going ahead, continued to rise by at least a further 2% after the output freeze was announced.
The production freeze has been heralded as a step in the right direction by many as the oil industry continues to adapt to an extended period of low prices.
Despite the positive news, oversupply and weakened demand growth remain major concerns and will likely have a dampening effect on oil prices for some time yet.
Edited from various sources by David Bizley
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