OPEC cuts pro­duc­tion by 1.2M bar­rels a day

Albuquerque Journal - - BUSINESS -

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.

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