OPEC Strikes Deal to Curb Oil Production

At a meeting in Vienna, Austria on Nov. 30, the Organization of Petroleum Exporting Countries (OPEC) agreed to cut oil production by 1.2 million barrels per day. The deal drove massive gains in the oil markets, with prices climbing eight percent above $50 per barrel immediately following the deal.

Analysts were doubtful of the deal in the weeks leading up to the Vienna meeting. OPEC, a group of the largest oil producers in the world, was negotiating to cut production in order to drive up prices from record lows.

During negotiations, countries such as Iran, Nigeria and Libya, sought an exemption from production cuts in order to balance their economies after economic sanctions passed down from the United States and the European Union. With more countries seeking exemption from oil production cuts, most believed the deal would fall apart.

Iran was granted the privilege of raising production amid the other nation’s cuts, while non-OPEC nations such as Russia have agreed to production cuts if OPEC can agree on quotas for each country. Non-OPEC nations are expected to cut production by an additional 600,000 barrels per day.

The production cuts will decrease supply and thus drive up prices, meaning a higher cost at the gas pump for consumers. The rise in prices is also likely to give more strength behind the oil fracking industry in the United States, with OPEC nations hoping that the increase in US oil production does not hold prices at current levels.


Crop prices (Nov. 28)

Rio Creek Feed Mill – Algoma

Commodity Price (per bushel) Basis
Corn $2.89 -0.60
New-Crop Corn $3.27 -0.61
Soybeans $9.56 -0.90
Soybeans $9.46 -0.81
Wheat (SRW) $2.96 -1.00
New-Crop Wheat (SRW) $3.70 -0.80


Fox River Valley Ethanol – Green Bay

Corn $2.96/bushel -0.53
New-Crop Corn $3.38/bushel -0.50


Basis: The difference between the local cash price for a commodity and the Chicago cash price (where the Board of Trade sets national futures price).


Gas Price Averages

United States: $2.13

United States one year ago: $2.05

Wisconsin: $2.05

Wisconsin one year ago: $1.96

Northern Door: $2.17

Sturgeon Bay: $2.13


Other Commodities

Gold: $1,189.10/troy ounce

Silver: $16.63/troy ounce

Oil: $47.07/barrel


Sources:,,,, Reuters, MarketWatch

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