OPEC agrees to cut output in bid to push up oil prices
Breaking with years of inaction, OPEC agreed Wednesday to cut its oil output for the first time since 2008. The move effectively scraps its strategy of squeezing U.S. competition through high supply that had backfired by lowering prices and draining the cartel’s own economies. The reduction of 1.2 million barrels a day is significant, leaving OPEC’s daily output at 32.5 million barrels. And OPEC President Mohammed Bin Saleh Al-Sada said nonOPEC nations are expected to pare an additional 600,000 barrels a day off their production. The combined cut will result, at least in the short term, in somewhat more pricey oil — and, by extension, car fuel, heating and electricity. The international benchmark for crude jumped 8.3 percent, or $3.86, to $50.24 on Wednesday.