Oil producers join forces, cut production
VIENNA >> Oil prices spiked sharply higher Friday as major oil producers, including the OPEC cartel, agreed to cut global oil production by 1.2 million barrels a day to reduce oversupply.
Following two days of meetings, 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, though some countries such as Iran, which is facing wide-ranging sanctions from the U.S., have been given an exemption.
The balance will come from Russia and other nonOPEC countries.
The United States, one of the world’s biggest producers, is not part of the deal.
“This is a major step forward,” said United Arab Emirates’ Energy Minister Suhail Mohamed al-Mazrouei.
Oil producers have been under pressure to reduce production following a sharp fall in oil prices over the past couple of months.