The Organization of the Petroleum Exporting Countries (OPEC) ministerial meeting has reached a deal to cut oil crude production by 1.2 million barrels a day starting from January, 2017.
OPEC state members would scale down production by 1.2 million barrels a day to 32.5 million barrels a day as of January 1st, 2017, the Organization's President and Qatari Energy Minister Mohammad Saleh Al-Saada told reports in a press conference after the decisive ministerial meeting held in Vienna Wednesday.
The agreement among OPEC countries marks the first time since 2008 that the organization has cut its production. Al-Saada pointed out that the organization has taken into consideration the circumstances of some unrest-ravaged countries. Non-OPEC oil producers are also willing to decrease production by 600,000 barrels a day, with Russia alone pledging to cut output by 300,000 barrels a day, he added.
Al-Saada also unveiled that the organization has formed a ministerial panel comprising Kuwait, Algeria, and Kuwait to follow up the global oil market developments as well as producers' abidance by their quotas.
The OPEC ministers have also voted Indonesia out of the organization and distributed its quota to other members, he noted. Following the announcement oil prices climbed by 8 percent on international markets with Brent crude exceeding US$ 50 per barrel benchmark.