>> This, for OPEC, was history. The cartel's first production cause in eight years made possible by Saudi Arabia and its archrival in the region, Iran, putting aside their differences. Even Russia ready apparently to join in cutting for the first time in 15 years.>> Looks like the momentum is with OPEC, and it looks like they're showing some unity and a kind of strength that many had questioned.
So I think that's all generally positive and really does improve the likelihood that we've put a bottom in the oil price.>> First signs are that it has. On news of the deal Brent Crude touching nearly $53 a barrel. Nearly twice what it was in January, though still only half its 2014 price.
But oil and gas stocks lighted up a percent and a half in Europe on a day when most stocks were negative. US bond yields also rising on a sense that inflation now lies ahead. The 30 year treasury yield climbing back towards the 14 month peak it hit last week.
And, there could be other winners.>> You could argue that actually some of the share producers in the US which will gain market share and be able to produce oil at a higher price will probably be bigger beneficiaries than these OPEC countries. Which have had to, in effect, give up some of their market share.
>> December the 9th, now the next key date, that's when OPEC will try to nail down commitments from Russia and other non OPEC members. If that happens, the cut will come into effect on January the 1st. A new year's day when consumers may well have to brace for higher prices at the pumps for every winner from this deal, losers too.