OPEC will reduce oil production for the first time since 2008 – RBK

the Meeting of Ministers of petroleum and energy of member countries of OPEC

Photo: Zuma/TASS/Qian Yi

OPEC for the first time in the last eight years, agreed to reduce the level of oil production. The cartel agreed to produce approximately 700 thousand barrels per day less. The price of Brent crude oil, however, have jumped almost 6%

OPEC members at talks in Algeria on Wednesday agreed for the first time since 2008 to reduce the level of oil production, reports Reuters, citing a statement by the Minister of oil of Iran Bijan Zanganeh.

“OPEC made the decision today exclusive <…> after two and a half years the group has reached consensus on the issue of management of the market”, — quotes Agency of his word.

According to Zanganeh, as well as other oil Ministers of the OPEC countries, the level of oil production of the countries-participants of the cartel will be reduced to 32.5-33 million barrels per day. According to estimates by OPEC, current oil production is of 33.24 million barrels per day.

“We decided to reduce production by about 700 thousand barrels per day,” said Zanganeh.

the Volume of production for each country in the cartel will be determined to the next formal meeting of OPEC to be held in November. The Agency adds that on Tuesday the Minister of energy of Saudi Arabia the Caliph al-falih said that Iran, Nigeria and Libya will be allowed to get to the highest levels within reasonable limits.”

OPEC members intend to appeal to the countries outside of OPEC, to join the agreements on the reduction of the level of oil production.

amid reports of progress made in the negotiations in Algiers agreements, oil jumped in price by almost 6%.

Saudi Arabia is the largest oil producer of OPEC: it produces more than 10.7 million barrels per day. Sources in the cartel told the Agency that Saudi Arabia had offered to cut production to approximately 10.2 million barrels per day if Iran agrees to freeze production at current levels — about 3.6—3.7 million barrels per day. Earlier, Tehran declared that wants to increase production to more than 4 million barrels a day.