Opec backs biggest oil cut since 2008 crisis awaits russia

OPEC (Organization of the Petroleum Exporting Countries) has agreed to cut oil production by the largest amount since the 2008 financial crisis, in an effort to boost prices and stabilize the global oil market.

According to reports, OPEC has agreed to cut production by 1.2 million barrels per day (mb/d), which is the largest cut since 2008. This decision was made at an emergency meeting of OPEC's 14 member countries, which was held in Vienna, Austria.

The cut is aimed at reducing the global oil supply and increasing prices, which have been under pressure due to rising production from non-OPEC countries, particularly the United States. The price of Brent crude oil, the global benchmark, has fallen by around 30% since October, to around $60 per barrel.

OPEC's decision is seen as a major victory for Russia, which has been pushing for a production cut to support oil prices. Russia, which is not a member of OPEC, has agreed to cut its own production by 300,000 barrels per day, in line with OPEC's decision.

The cut is expected to take effect from January 1, 2020, and will be reviewed in April 2020. The decision is seen as a major step towards stabilizing the global oil market, which has been facing significant challenges in recent months.

The cut is also seen as a major blow to the United States, which has been the world's largest oil producer since 2018. The US oil industry has been booming in recent years, driven by the shale revolution, and has been a major contributor to the global oil supply.

However, the cut is also seen as a major opportunity for the US oil industry, as it could lead to increased demand for US oil and potentially higher prices. The US oil industry has been facing significant challenges in recent months, including a decline in oil prices and a surge in production costs.

Overall, the OPEC decision is seen as a major development in the global oil market, and is likely to have significant implications for oil prices, production, and consumption in the coming months.