Members of the Organization of Petroleum Exporting Countries (OPEC) have agreed to cut crude oil production by 1.2 million barrels per day beginning in January. Russia announced it would cooperate and lower production by 300,000 barrels per day, and there is some chance other nations representing about 20% of global production will also join in following an upcoming meeting.
On October 19, Saudi Arabia held its first international bond sale - EVER! The sale, which received orders of $67 billion for the $17.5 billion in bonds offered, is the largest to date from an emerging market economy. Investors eagerly welcomed the offering as a way to achieve further exposure in the Middle East given recent expectations that the price of oil will rebound next year. The kingdom offered dollar-denominated bonds with yields slightly higher than US Treasuries with similar maturities. In total, Saudi Arabia raised $5.5 billion of both 5- and 10-year bonds and another $6.5 billion in 30-year bonds.