This week saw good news for High Plains oil producers, and bad news for consumers at the gas pump.
As Fortune reports, the Organization of Petroleum Exporting Countries agreed Wednesday to curb its output by some 1.2 million barrels a day.
The cut effectively ends a two-year period that saw worldwide oil markets glutted by overproduction. OPEC, driven by Saudi leadership, had been pumping massive amounts of oil into world markets in an effort to drive down production in the United States. The new agreement opens the door for High Plains producers to ramp up production.
However, there’s still a possibility that the deal could collapse.
The agreement is contingent on non-OPEC producers like Russia cutting output by 600,000 barrels. In the past, Moscow has only agreed to cut production by half that amount. Now, all eyes are on the Kremlin.