Oil prices will likely continue to rise following a meeting between OPEC and non-OPEC oil producing countries Saturday.
According to Bloomberg.com, Russia, along with other non-OPEC nations, pledged to cut a combined 558,000 barrels of oil per day during Saturday’s meeting, in which OPEC member countries reiterated their decision to cut 1.2 million barrels of oil per day.
Both cuts are effective Jan. 1 and represent what Bloomberg calls a forceful effort by producers to wrest back control of the global oil market, depressed by persistent oversupply and record inventories.
As Bloomberg reports, Russia pledged to cut output by 300,000 barrels a day next year, down from a 30-year high last month of 11.2 million barrels a day. Mexico agreed to cut 100,000 barrels, Azerbaijan by 35,000 barrels and Oman by 40,000 barrels.
Oil prices have jumped by more than 15 percent since OPEC's Nov. 30 announcement, rising to $55 per barrel early last week. As of Friday, according to OPEC, the price had leveled out to around $50 per barrel.
AAA reported last week a rise in average gas prices, as well, which increased from $2.13 per gallon to $2.18 per gallon.
According to a press release from OPEC, the decision to adjust oil production was driven by a desire to achieve market stability in the interest of oil producers and consumers.
To watch videos of Saturday's OPEC and non-OPEC ministerial meeting, visit OPEC’s website.