Oil prices settled up nearly 6 percent on Wednesday after OPEC struck a deal to limit crude output at its policy meeting in November, its first agreement to cut production since 2008 and after the market crashed on oversupply.
The Organization of the Petroleum Exporting Countries reached agreement to limit its production to a range of 32.5-33.0 million barrels per day (bpd) in talks held on the sidelines of the Sept. 26-28 International Energy Forum in Algiers, group officials told Reuters.
OPEC estimates its current output at 33.24 million bpd.
"We have decided to decrease the production around 700,000 bpd," Iranian Oil Minister Bijan Zanganeh said.Click here to read more.
OPEC will agree to production levels for each member country at its Nov. 30 meeting in Vienna, group officials said. After reaching its group target, it will seek support from non-member oil producers to further ease the global glut.
This news, which many no doubt feel is long overdue, pushed oil prices up to the highest levels seen in recent weeks. Brent Crude reached as high as $48.96 before settling at $48.69, while West Texas Intermediate (WTI) rose to $47.45 before finishing the day at $47.05.
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