OPEC Agrees to Modest Output Cuts in First Deal Since 2008

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James Thew/Adobe Stock

OPEC has agreed to its first deal to curb production since 2008. Some are saying that Deutsche Bank may collapse without a bailout from the German government.

OPEC Agrees to Cut Output

The Organization of Petroleum Exporting Countries‘ member-states agreed on Wednesday to modest oil output cuts in the first such deal since 2008, with the group’s leader, Saudi Arabia, softening its stance on arch-rival Iran amid mounting pressure from low oil prices.

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“OPEC made an exceptional decision today … After two and a half years, OPEC reached consensus to manage the market,” said Iranian Oil Minister Bijan Zanganeh, who had repeatedly clashed with Saudi Arabia during previous meetings.

He and other ministers said OPEC would reduce output to a range of 32.5-33 million barrels per day. OPEC estimates its current output at 33.24 million bpd.

Deutsche Bank Bailout?

Only a substantial intervention by the German government can stop the collapse of the country’s largest lender, Deutsche Bank, according to Stefan Müller, the CEO of Frankfurt-based boutique research company DGAW.

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“Deutsche Bank doesn’t realize that something serious needs to happen,” he told CNBC Thursday morning. “(CEO John) Cryan clearly showed that he has no idea how to survive.”

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