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OPEC Members Agree To Oil Output Cut

For the first time in eight years, members of the Organisation Of Petroleum Exporting Countries, (OPEC), have agreed to a 1.2 million barrel per day … Continue reading OPEC Members Agree To Oil Output Cut


OPECFor the first time in eight years, members of the Organisation Of Petroleum Exporting Countries, (OPEC), have agreed to a 1.2 million barrel per day output cut to 32.5 million a day.

This comes after weeks of often tense negotiations, with the group’s three biggest producers, Saudi Arabia, Iraq and Iran, who resolved their differences over sharing the burden of cuts to rein in supply for the first time since 2008.

Nigeria’s Minister of State for Petroleum, Dr Ibe kachikwu said OPEC members are “largely convergent” on a need for a production cut.

The price of Brent crude jumped more than 8% to 50 dollars 26 cents a barrel, recovering from a drop of nearly 4% on Tuesday and on course for their biggest one-day move in nine months.

The deal however promises to revive the tattered finances of countries from Venezuela to Libya and restore flagging confidence in the producer bloc that controls 40% of the world’s oil.