OPEC cuts production by 1.2M barrels a day
VIENNA — Oil prices spiked Friday as major oil producers agreed to cut global oil production by 1.2 million barrels a day to reduce oversupply.
The Organization of the Petroleum Exporting Countries that includes the likes of Saudi Arabia and Iraq said they would cut 800,000 barrels per day for six months from January.
The balance will come from Russia and other non-OPEC countries. The United States, one of the world’s biggest producers, is not part of the deal.
Following the announcement, Brent crude, the international standard, was up $2.79 a barrel, or 4.7 percent, at $62.85. Benchmark New York crude was $2.11, or 4.1 percent, higher at $53.60 a barrel.
Ann-Louise Hittle, a vice president at oil industry expert Wood Mackenzie, predicted the production cut would help lift Brent prices back above $70 per barrel.