OPEC barrel surges past $50 per barrel for first time in 15 months
The Organization of the Petroleum Exporting Countries announced on Monday that the crude oil basket used as a benchmark indicator stood at $50.49 per barrel on Friday.
The OPEC daily basket price rose by almost 13 percent after the group announced last Wednesday that it was cutting oil production by 1.2 million barrels as from January 2017, reining in the production glut that kept oil prices low for the past two years.
This cut-back, the first of its kind since 2008, is to be backed by other non-OPEC countries, such as Russia, who will cap an additional 600,000 barrels per day from the world market.
OPEC oil price shot up by 10 percent as soon as the agreement was made public, and on Friday it increased an additional 2.3 percent.
OPEC oil had not broken through the 50 dollars/barrel ceiling since July 31, 2015 and had been subject to very strong downward trends that drove its price to a low of $22 in early 2016.
This could mean a little breathing room to Venezuela's economy which is purely oil based. Also, if this prices keep ricing or at least not falling below this level, other economies in Latin America that rely on income from oil -like Colombia and Ecuador- could see non-tax related income rise easing thier current finantial problems