OPEC agrees to cut out­put in bid to push up oil prices

Baltimore Sun - - AROUND THE REGION - — As­so­ci­ated Press

Break­ing with years of in­ac­tion, OPEC agreed Wed­nes­day to cut its oil out­put for the first time since 2008. The move ef­fec­tively scraps its strat­egy of squeez­ing U.S. com­pe­ti­tion through high sup­ply that had back­fired by low­er­ing prices and drain­ing the car­tel’s own economies. The re­duc­tion of 1.2 mil­lion bar­rels a day is sig­nif­i­cant, leav­ing OPEC’s daily out­put at 32.5 mil­lion bar­rels. And OPEC Pres­i­dent Mo­hammed Bin Saleh Al-Sada said nonOPEC na­tions are ex­pected to pare an ad­di­tional 600,000 bar­rels a day off their production. The com­bined cut will re­sult, at least in the short term, in some­what more pricey oil — and, by ex­ten­sion, car fuel, heat­ing and elec­tric­ity. The in­ter­na­tional bench­mark for crude jumped 8.3 per­cent, or $3.86, to $50.24 on Wed­nes­day.

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