Canadian oil investors should not underestimate how bullish this is for oil stocks—not only does the agreement mean up to 1.8 million barrels of production per day will be removed, but it also means that OPEC is back to market manipulation.
Oil prices have dropped sharply after a meeting of oil producers failed to agree an output freeze.
Brent crude fell 7% at one point before recovering some ground. In afternoon trade it fell 3.4% to $41.70 a barrel.
The meeting in Qatar was attended by most members of oil producers' group Opec, including Saudi Arabia, but not Iran.
