OPEC: Russia commits to cut 300,000 barrels per day
Mohammed bin Saleh al-Sada, Qatar's energy minister and president of the Organization of the Petroleum Exporting Countries, said at a news conference on Wednesday in Vienna that the cartel struck a deal to reduce exploitation levels by 1.2 million barrels per day to 32.5 million in the six months starting with January. After much controversy before and during OPEC's regular meeting, he revealed the platform will be presented to other major producers involved in negotiations on market management measures, and that they should participate with output cuts of 600,000 barrels per day in total.
Al-Sada claimed Russia, the biggest exporter in the group outside of the cartel, already committed to reduce production by half of the assigned quota. The finalization of the agreement depends on the other countries agreeing to participate. Indonesia, a net importer of oil, was asked to suspend its membership in OPEC, he added and explained total production includes the country's share of 700,000 barrels per day.
Saudi Arabia should cut output by 486,000 and Iraq participates with 210,000 barrels per day. Futures remained near daily highs despite a rising dollar – WTI crude was 7.72% up at $48.72 per barrel and Brent changed hands for $49.91 for one barrel or 7.61% higher in the session (both 5:29 p.m. CET). The dollar index jumped 0.72% at 5:41 p.m. CET.