OPEC group of oil-producing countries and their allies, including Russia, have decided to cut oil production by 500,000 barrels per day. In a meeting in Vienna, they agreed to reduce production to stem pressure on prices from abundant reserves and weak global economic growth.
According to a statement, Ministers gathered at OPEC headquarters decided for an additional adjustment of five lakh barrels per day, effective from 1st January 2020. This would bring production 1.7 million barrels per day below October 2018 levels.
The group, however, said, in addition, several countries, mainly Saudi Arabia, will continue their additional voluntary contributions. It will lead to an overall production cut to 2.1 million barrels per day. The statement said OPEC and its partners would convene a special meeting on 6th March next year to review oil production.
Oil prices surged following the announcement, with US benchmark WTI and its European counterpart Brent crude by about two per cent higher.