Crude prices rally 9% on OPEC output cut
Oil prices surged around 9% on Wednesday after members of the Organization of Petroleum Exporting Countries (OPEC) announced they reached an agreement to cut oil production for the first time in the last eight years.
In a bid to prop up the price of crude, cartel members said they would reduce output by 1.2 million barrels per day to 32.5 million barrels per day – a cut that includes Iraq's pledge to lower supply by 200,000 barrels per day to 4.351 million barrels per day for six months starting in January next year. Among non-OPEC producers, Russia committed to reduce its output by 300,000 barrels per day, OPEC's president Mohammed bin Saleh al-Sada said earlier today.
Brent crude futures for January delivery jumped 8.55% to $50.3 per barrel at 7:50 p.m. CET, while futures on the West Texas Intermediate oil surged 9.71% to $49.59 per barrel at the same time.