iHumanMedia.com reports that OPEC partners led by Saudi Arabia have agreed to a 5% cut their petroleum output. For the past year, Saudi Arabia has flooded the global market with a surplus of oil to push U.S. and Canadian producers to scale back operations, choking them to pull-back. For the most part, the OPEC strategy has worked cause lay-offs in the U.S. energy sector.
Although, Iran has stated their intentions to boost oil output 500,000 barrels per day in 2016.
By cutting back the output this will put some pressure on global markets to raise the price of oil. Recently, Saudi Arabia has voiced displeasure with the Obama administration because of the U.S. sluggish response to Syria and the Palestinian crisis. Analysts point-out Saudi Arabia’s desire to be the dominant geopolitical leader throughout the middle East.
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