The ramifications of the decision to decrease oil production by OPEC are still being felt on the markets. Oil today closed over $50 a barrel for the first time in weeks.
Oil prices were up about 1 percent on Monday after comments by Iran’s leader exhorting the need for other oil producers to join OPEC in supporting the market.
Iran’s President Hassan Rouhani told his Venezuelan counterpart Nicolás Maduro in a telephone conversation that it was essential for oil producing countries to take a decision to raise the price of oil and stabilize the market, Tehran state news agency IRNA reported.
Rouhani’s remarks added to the bullish fervor in the market since last week after the Organization of the Petroleum Exporting Countries announced its first planned output cut in eight years.
December Brent crude futures were last up 57 cents, or 1.1 percent, at $50.76 a barrel by 1:55 p.m. (1755 GMT), retreating from a six-week high of $50.90.
The increase in oil prices is good news for the oil patch in this state. It will go a long way to helping revive the oil industry, which has been suffering for years from the oil crash.
Ironically, Louisiana’s oil industry is counting on Iran and Venezuela to give it a shot in the arm. But after some pretty lean years on the bayou, they’ll take the help no matter where it comes from.