OPEC agrees on larger-than-expected 1.2mn bpd output cut with allies

The cartel concluded its meeting with an accord to remove 1.2mn barrels a day of crude from the market, with non-OPEC allies, including Russia, taking a 400,000 barrel-a-day share, delegates said, asking not to be named because the information wasn’t public.

Dec 07, 2018 02:12 IST India Infoline News Service

OPEC has finalized an agreement for a larger-than-expected production cut in conjunction with its allies, sending oil prices soaring after several days of difficult talks in Vienna.

The cartel concluded its meeting with an accord to remove 1.2mn barrels a day of crude from the market, with non-OPEC allies, including Russia, taking a 400,000 barrel-a-day share, delegates said, asking not to be named because the information wasn’t public.

The deal was reached after Iran was granted an exemption from curbing its output due to US sanctions, which have already sharply reduced the nation’s oil shipments.

Crude surged 4.7% in London, raising the risk that the deal could anger US President Donald Trump, who urged the group to keeps the taps open and prices low.

Source: Bloomberg

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