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OPEC, Russia Agree to Cut Oil Production
Oil ministers from OPEC, Russia and other producers have agreed to reduce their collective output by 1.2 million barrels of crude per day in an effort to bolster petroleum prices.
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Oil ministers from OPEC, Russia and other producers have agreed to reduce their collective output by 1.2 million barrels of crude per day in an effort to bolster petroleum prices.
The plan calls for an 800,000-barrel reduction by members of the Organization of the Petroleum Exporting Countries. A coalition led by Russia will contribute the 400,000-barrel balance.
Saudi Arabia and Russia, which have been pumping petroleum at an average rate of about 11 million bpd, agreed to cut their daily outputs by 230,000 and 250,000 barrels, respectively. OPEC exempted cartel members Iran, Libya, Nigeria and Venezuela because of their economic troubles.
The cutbacks come as oil production in the U.S. has surged to an all-time high. The output has driven down prices and expanded inventories of available crude.
The price of Brent crude, the global standard, skidded 30% from $85 per barrel in early October to less than $60 in late November. Prices closed on Friday at $61.67, up 3%.
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