Participants attend the end session of the 15th International Energy Forum Ministerial (IEF15) in Algiers, Algeria September 28, 2016. REUTERS/Ramzi Boudina
Reuters: OPEC reaches first deal to cut oil output since 2008 - sources
OPEC agreed on Wednesday to cut its oil output for the first time since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.
Two sources in the Organization of the Petroleum Exporting Countries said the group would reduce output to 32.5 million barrels per day from current production of 33.24 million bpd.
How much each country will produce is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia, sources said.
Oil prices LCOc1 jumped more than 5 percent to trade above $48 per barrel as of 1830 GMT after the outcome of OPEC's informal meeting in Algeria took traders by surprise. Still, many said they wanted to see the details of the deal.
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WNU Editor: So much for Saudi Arabia's policy of grabbing market share .... they have thrown in the towel. Russia is not part of this deal .... which tells me that the bump in prices that OPEC was hoping for may not happen (at least for now).
More News On OPEC Reaching A Deal To Cut Oil Output
OPEC Agrees on Need to Cut Oil Output -- WSJ
OPEC agrees to limit oil output at 32.5 million barrels per day -- Reuters
OPEC Agrees to First Oil Output Cut in Eight Years -- Bloomberg
Oil Climbs Most in Five Months as OPEC Said to Reach Output Deal -- Bloomberg