The news has just broke at MSNBC that OPEC have agreed to cut oil production back nearly 2.2 million barrels per day, the single largest cut ever in history. OPEC President Chekib Khelil stated “I hope we surprised you” after reporters were surprised at the large cut. “If you’re not surprised we need to do something about it”. OPEC made the announcement as an effort to help counterbalance consumer confidence and drive the price of crude oil back up, after it sank to nearly $40 dollars per barrel, a figure not seen in nearly 5 years. “In just five months, crude has given up all of the price gains made over the past four years”. Khelil finished his statements with “if unchecked, prices could fall to levels which would place in jeopardy the investments required to guarantee adequate energy supplies in the medium to long term”.
What do you think Truckblog? Do you believe this is just an attempt by OPEC to drive oil prices back up?