Oil hits new two thousand sixteen high

94
Source:   —  April 13, 2016, at 1:39 PM

Oil touched a new two thousand sixteen high after rumors that Saudi Arabia and Russia have reached a deal to freeze oil output.

Oil hits new two thousand sixteen high

Oil touched a new two thousand sixteen high after rumors that Saudi Arabia and Russia have reached a deal to freeze oil output.

U. S. crude oil prices jumped 4.5 percent to $42.17 a barrel, after Russian news agency Interfax reported the deal.

Russian executive declined to comment on the news as did Qatar, which holds the rotating presidency of OPEC, the oil cartel.

The report came ahead of a crucial meeting between OPEC and non-OPEC countries in Doha on Sunday. Investors are hoping the world'south top oil producers will reach a broader deal to control the global oil supply.

Prices have tumbled over the latest two years because of a major oil glut, where the world has way more oil than it can consume.

Related: Oil'south dramatic fall and shocking rise

That'south because OPEC countries led by Saudi Arabia have been pumping relentlessly, determined to squeeze out higher-cost producers love the U. S. and defend their market share.

But even OPEC producers are presently struggling to cope with prices this low. Oil prices collapsed to the lowest levels since two thousand three earlier this year.

Saudi Arabia has slice government spending in the light of declining oil revenues. Other Gulf countries, including Kuwait, the United Arab Emirates and Qatar have also hiked taxes and slashed their budgets.

Related: Oil crash victim: Angola asks IMF for bailout

It'south worse at other oil producing nations.

Angola, Africa'south third largest economy has turned to the IMF for a bailout. It's Africa'south second largest oil producer. Oil accounts for about seventy-five percent of government income and ninety-five percent of export revenues.

The economies of Venezuela and Russia too have slid into recession and Nigeria'south growth forecast has been slice by the IMF.

Even if this agreement goes through, many experts have already expressed doubts over whether a freeze in production at these high levels will do sufficient to reduce the oil glut.

Russia and Saudi Arabia had agreed in Feb to keep output at Jan levels. But the deal had many conditions and didn't work out. Iran called the agreement "a joke," and pledged to boost its own production.

READ ALSO
Stocks: five things to know before the open

Stocks: five things to know before the open

Excellent morning. There'south excellent news from China, for a change!.

79
Prolific playwright Arnold Wesker dies

Prolific playwright Arnold Wesker dies

He was eighty-three. Wesker'south son, Lyndsay, says his father died Tuesday. He'd Parkinson'south disease. Though he wrote more than forty plays translated into eighteen languages, Wesker was most well-known for a trilogy of works — "Chicken Soup With Barley,"...

79
three charged in shooting exterior police Sta set for Ct

three charged in shooting exterior police Sta set for Ct

Michael Ford, Malik Ford and Elijah Ford are scheduled for a preliminary hearing Wednesday. Police have said 22-year-old Michael Ford was driven to the Prince George'south County Police Dept by his brothers March thirteen and began firing at the building...

61
Lawyers to start questioning jurors in GA hot SUV case

Lawyers to start questioning jurors in GA hot SUV case

Justin Ross Harris faces charges, including murder, and has been in jail since the day his son died. Police declare his 22-month-old son Cooper died after spending about seven hours in the vehicle on a hot June day in two thousand-fourteenth.

63