After a surplus in oil supplies leads to the falling cost of oil, Opec states reach a deal to cut production in an attempt to raise prices once again

The oil-producing Opec states have agreed to cut production in an effort to restore the price of crude oil in the wake of a drop in global demand.

The price of oil is expected to increase following the cut in production, before the market stabilises once more at a higher price point. The production cuts will be shared between the larger member states of Opec.

Read about Brexit fuel price fears here

The production cut takes effect in 2017, when the group of nations, according to a report from the Financial Times, will cut 1.2 million barrels per day from Opec's total output. This is the first time Opec has agreed to scale back production since the financial crisis of 2008.

It was previously expected that fuel prices would increase as a result of Brexit, although they actually fell in August, albeit for the first time in months. In January of this year, average fuel prices were the lowest they had been since 2009, although the price of unleaded has risen steadily from 102.3p per litre in January to 115.7p per litre in November.

Read more about the year's fuel price fluctuations

It’s not yet known by how much fuel prices will rise, but the largest leap in prices came between March and April this year, when the price of one litre of petrol climbed 4.2p per litre to 107.2p.

It has been reported that the larger Opec member states are hoping for a quick recovery of prices, so expect them to rise before the second quarter of 2017. 

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Comments
6

2 December 2016
And is it legal? Maybe the car manufacturers should get together and cut production - then they might be a bit more profitable. Seriously though I don't think this is a bad thing. We've had cheap energy for too long and it's resulted in cars which are nowhere near as efficient as they could be.

289

2 December 2016
Yes...it is price fixing....a cartel. And I am surprised that this is still allowed in this day and age.
Oil is not a luxury, it is a necessity and members of OPEC shouldn't be allowed to play around with peoples lives in this callous way.
These are not exactly destitute countries, so they cannot play the hardship card.

2 December 2016
Yes, they'll be cutting production at the pumps and that is controlled by OPEC, however if peopel look beyond these countries, the biggest oil companies in the world are in effect agreeing to this. I'm taklking the seven sisters ...

2 December 2016
pumps ---> drills

3 December 2016
up to I saw the paycheck which had said $8845 , I have faith that my friends brother woz like actualy erning money part-time on their apple labtop. . there aunt had bean doing this 4 only 7 months and resently took care of the morgage on there mini mansion and bought themselves a Lancia . view it now....

========www.centerpay70.com

3 December 2016
it's 119.2p in central Scotland just now,Morrisons are supposed to be starting 10p off a litre when you spend £50.00 in store,will the other Super Markets follow?

Peter Cavellini.

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