Mubasher: The Organization of Petroleum Exporting Countries (OPEC) on Friday agreed with Russia on significantly cutting oil production, clearing a global supply glut.
OPEC along with Russia and its allied producers would reduce crude output by a collective 1.2 million barrels per day (bpd), starting next year.
The producer group would cut production by 800,000 bpd, while Russia-led non-OPEC group would handle the remaining cuts.
The agreement came after Iran agreed to OPEC member curbs of 800,000 bpd, as reported by Thomson Reuters.
Russia joined the talks in Vienna on Friday amid speculation that it would cut its output by a maximum of 150,000 bpd.
Earlier this week, Saudi Arabia, OPEC’s de-facto leader, and Russia disagreed over sharing the burden of cuts to curb a 30% plunge in oil prices since early October.
By 3:28 pm, global benchmark Brent futures jumped 5.18% to $63.17 per barrel (pb), while US Nymex crude futures climbed 4.29% to $53.70 pb.