OPEC, Organization of the Petroleum Exporting Countries, reached a deal to cut over production Wednesday. The company consist of fourteen nations and it is the first production cut deal in eight years and the price of oil is expected rise.
The price of oil is up 7 percent according to NBC News, which could mean more jobs for East Texas oil workers.
“We have to wait and see how willing the OPEC members are willing to be, to honor their quotas. Bob Garrett, President of Fair Oil in Tyler said. “Another factor is we need to see how quickly the industry and United States can react to higher prices.”
In-fighting between Saudi Arabia and Iran kept a deal from happening sooner. An OPEC member from Saudi Arabia says they’ll accept “a big hit.”
“This move by OPEC is maybe a signal that their strategy that they’ve been following the last two years of protecting market share, increasing their production, keeping prices low in order to competition that may be collapsing.” Garrett said.
To learn more about OPEC click here.