Mubasher: Fitch Ratings commented on the decisions of the OPEC saying that they are big steps towards market rebalancing.
“OPEC's agreement to cut production by 1.2 million barrels of oil per day, and the potential agreement to cut with non-OPEC countries, should help accelerate market re-balancing and increases the chances of more rapid oil price recovery than previously expected,” said Fitch Ratings in a Thursday report.
The rating firm noted that implementation risks remain that include adherence to the agreement and the willingness of other participants, notably Russia, to fully cooperate.
On Wednesday, OPEC agreed on reducing the oil production by about 1.2 million barrels to 32.5 million barrel by the beginning of January.
The member countries recommended that the deal will be for six months and could be extendable according to the market circumstances and expectations.
The conference also decided to establish a High-level Monitoring Committee, consisting of Oil Ministers, and assisted by the OPEC Secretariat, to monitor the implementation of the Agreement, according to OPEC statement.
