THE ISSUE

Global oil prices hit record lows last year, and oil-dependent countries have been suffering from reduced prices and falling demand. As a result, OPEC — the group of 13 oil-producing countries who work to control prices — decided to step in.

THE FACTS

In November, OPEC agreed — for the first time since 2008 — to cut overall production by 1.8 million barrels a day, divvied among its members. Non-OPEC countries, like Russia, have also joined in on the cuts. The aim is to restrict production enough so that demand rises, and prices rise with it.

The biggest problem worrying industry experts is that the agreement isn't enforceable, and many countries have an incentive to cheat the other OPEC members, which they've done before. They do this by producing a little more oil than they said they would to take advantage of the higher prices.

The deal went into effect on Jan. 1, and OPEC members have stuck to their word, so far. According to the International Energy Agency, Saudia Arabia cut production by even more than it committed to in the first month alone, and higher demand has helped boost the group's vow to rebalance world markets. In the U.S., oil producers are taking advantage of the higher prices by ramping up drilling activity and increasing daily output to the highest levels since April.

WHY THIS MATTERS

If all members of OPEC pull through and continue to cut production by the amount they say they will, they'll eliminate much of the glut in the oil market that's bogged down the industry for over two years. If not, the deal could be the beginning of the end for OPEC.

Go deeper

Louisville officer: "Breonna Taylor would be alive" if we had served no-knock warrant

Breonna Taylor memorial in Louisville. Photo: Brandon Bell/Getty Images

Sgt. Jonathan Mattingly, the Louisville officer who led the botched police raid that caused the death of Breonna Taylor, said the No. 1 thing he wishes he had done differently is either served a "no-knock" warrant or given five to 10 seconds before entering the apartment: "Breonna Taylor would be alive, 100 percent."

Driving the news: Mattingly, who spoke to ABC News and Louisville's Courier Journal for his public interview, was shot in the leg in the initial moments of the March 13 raid. Mattingly did not face any charges after Kentucky Attorney General Daniel Cameron said he and another officer were "justified" in returning fire to protect themselves against Taylor's boyfriend.

U.S. vs. Google — the siege begins

Illustration: Sarah Grillo/Axios

The Justice Department fired the starter pistol on what's likely to be a years-long legal siege of Big Tech by the U.S. government when it filed a major antitrust suit Tuesday against Google.

The big picture: Once a generation, it seems, federal regulators decide to take on a dominant tech company. Two decades ago, Microsoft was the target; two decades before that, IBM.

Dion Rabouin, author of Markets
55 mins ago - Economy & Business

Why the stimulus delay isn't a crisis (yet)

Illustration: Aïda Amer/Axios

If the impasse between House Speaker Nancy Pelosi and the White House on a new stimulus deal is supposed to be a crisis, you wouldn't know it from the stock market, where prices continue to rise.

  • That's been in no small part because U.S. economic data has held up remarkably well in recent months thanks to the $2 trillion CARES Act and Americans' unusual ability to save during the crisis.