Oil prices jumped sharply on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) reached a consensus to curtail oil production. The agreement, finalized at a meeting in Vienna, aims to reduce the global supply glut that has plagued the market for over two years.
Key Details of the Agreement
Under the terms of the agreement, OPEC will cut production by 1.2 million barrels per day, bringing the organization’s total output to 32.5 million barrels per day. Several non-OPEC countries, including Russia, have also pledged to reduce their output by a combined 600,000 barrels per day.
Impact on the Market
The news of the production cuts sent oil prices soaring, with Brent crude, the international benchmark, rising by over 8% to above $50 a barrel. Analysts predict that the cuts will help to rebalance the market and support higher prices in the coming months.
Reactions from Industry Experts
Industry experts have largely welcomed the agreement, noting that it demonstrates OPEC’s commitment to stabilizing the oil market. However, some analysts caution that the success of the agreement will depend on the full compliance of all participating countries.
- OPEC agrees to cut production by 1.2 million barrels per day.
- Non-OPEC countries pledge to reduce output by 600,000 barrels per day.
- Oil prices surge following the announcement.
