Non-OPEC Producers Agree to Cut Oil Output

Non-OPEC Producers Agree to Cut Oil Output

OPEC and non-OPEC oil producers on Saturday reached their first deal since 2001 to cut their petroleum output by 1.76 to 1.8 million bpd.

Members of the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and some other non-OPEC crude supplies rallied on Saturday in Vienna to discuss methods of cooperation to help boost crude oil prices in the global oil market.

The 13 OPEC states agreed in their November 30 meeting in Vienna to cut their output by 1.2 million barrels per day and Saudi Arabia reduced its output by about 500,000 barrels per day, which was the highest possible portion in the production.

The OPEC accord will be in force as of January 1, 2017. It will be in effect for six months and based on it all the non-OPEC states, excluding Libya and Nigeria, will cut their production by 4.5 percent.

Iran will be allowed to add 90,000 barrels per day to its production on the average in six months.

Kazakhstan, Guinea, Azerbaijan, Russia, Sudan, Malaysia, Oman, Sudan, Bolivia, Mexico, Bahrain and South Sudan are the countries present in the meeting with the 13 OPEC members.

Source:Fars