What does OPEC’s tentative deal mean for oil?

DUBAI, United Arab Emirates — OPEC nations have agreed in theory that they need to reduce their production to help boost global oil prices during a meeting in Algeria, but a major disagreement between regional rivals Saudi Arabia and Iran still may derail any cut.

What happened to oil prices and why can’t OPEC agree to anything more binding? and countries like Saudi Arabia keeping their production high to hold onto market share.

In the time since, a deal between Iran and world powers over its contested nuclear program allowed it more firmly back into the global oil market. The Islamic Republic wants to make up for lost time by boosting its own production. fell apart.

Meanwhile, financial markets have hung on every vague utterance suggesting a deal, sparking mini-rallies in crude prices that later fade. The same seemed to be happening after Wednesday’s meeting, as U.S. crude futures surged and later fell back. face tremendous economic pain as oil prices remain low.

Even mega-producer Saudi Arabia has cut salaries for senior government officials while eating through its foreign reserves and cutting subsidies as it wages a costly war in Yemen. But consumers benefit. U.S. drivers pay an average of $2.20 a gallon (58 cents a litre) for regular gasoline, down from $3.69 a gallon (97 cents a litre) in June 2014 at crude’s height.