The Organization of Petroleum Exporting Countries (OPEC) has reportedly reached a deal among all 14 member countries to curtail oil production for the first time since 2008, the oil-producing cartel announced from its headquarters in Vienna on Wednesday.
OPEC ministers confirmed the group had secured a cut in its oil production from 33.8 million barrels a day (b/d) to 32.5 million b/d in an effort to prop up prices. Oil prices have fallen by more than half since mid-2014 due to global oversupply and booming U.S. shale production.
As a result, Brent crude prices were up over 8% as the deal was announced, trading around $50.12 U.S. a barrel while WTI was also up over 8% and trading at approximately $48.97 U.S. a barrel.
Qatar claimed Russia -- not a member of OPEC -- was committed to reducing oil production by 300,000 b/d and the 14-member oil exporting countries are poised to meet with non-OPEC producers on December 9.
Media reports all had Kuwait, Venezuela and Algeria agreeing to monitor compliance of the OPEC agreement.
