The global supply of oil might be about to shrink, and prices rise. Saudi Arabia's Energy Minister announced on Nov. 11 the kingdom would cut its oil production by 500,000 barrels per day in December. In the same month, the 15 nations that make up OPEC will likely confirm a coordinated move to push prices higher. Add the imposition of U.S. sanctions on Iran's oil exports that came into force on Nov. 5, lower production in crisis-plagued Venezuela and the risk that unrest may lower production in places like Libya and Nigeria, and oil could be set for a rebound.
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