The Organization of Petroleum Exporting Countries (OPEC) helped oil prices soar after as much as 5.4% on Friday, after the cartel finally agreed to make supply cuts after a several tough days of talks in Vienna.
The oil producing cartel eventually agreed to reduce production by 1.2 million barrels a day, with non-OPEC countries like Russia agreeing to shoulder a 400,000 barrel a day share – exceeding market expectations.
Pressure on oil prices finally eased
Oil prices have been in a downward spiral since hitting high of $86.29 in early October, with Brent Crude falling more than 30% to a low of $58.80 a barrel in late-November.
Oils fall from grace was driven by an excess of supply, a consequence of sanctions waivers for some countries to acquire Iranian oil, as well as large US crude reserves and glut of production spurred by US President Donald Trump applying pressure on Saudi Arabia to not cut supply.
But thanks to the agreement reached in Vienna on Friday morning, the price of oil should begin to stabilise.