Local oil industry feels effects of OPEC agreement

Local oil industry feels effects of OPEC agreement
Oil rig in the Permian Basin. (Source: KWES)

(KWES) - An agreement on the other side of the globe could have a major impact here in the Basin.

OPEC is tentatively agreeing to cut back on the amount of oil they export.

While that isn't a final decision, the price of oil has gone up more than $3 since Tuesday.

We spoke with the Permian Basin Petroleum Association, who said with this decision, the industry is looking to move in the right direction.

"If there is less production on the market, that's going to shrink the oversupply so that means that prices should go back up. If prices go back up, more people should be able to go back out into the field and start working again," said Stephen Robertson, Executive Vice-President of the Permian Basin Petroleum Association.

A warning though: the association said OPEC has promised to decrease production in the past but they never followed through with it.

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