Nov 30, 2016 15:50 UTC
  • OPEC agrees first oil production cut in 8 yrs: Informed source

Delegates attending the 171st ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC) have reached an agreement to slash oil production in a bid to prop up global prices, the first output cut since 2008, an informed source says.

Reuters quoted the unnamed source as saying on Wednesday that the deal was in line with a preliminary OPEC accord reached in Algiers in September that would cut output at around 32.5 million barrels per day (bpd) compared to the current 33.64 million bpd.

Wednesday's agreement came in Vienna during a meeting of the 14-member oil-producing cartel, which accounts for a third of global oil production.

Iran, Libya and Nigeria are reportedly expected to be exempt from any agreement to limit supply.

Earlier on Wednesday, Saudi Energy Minister Khalid al-Falih announced that OPEC was close to striking the deal.

“Any production-restraint agreement has to be distributed in an equitable way. We are getting close,” he said, adding, "It will mean that we (Saudis) take a big cut and a big hit from our current production and from our forecast for 2017. So we will not do it unless we make sure that there is consensus and an agreement to meet all of the principles.”

Falih also expressed hope that Russia and other non-OPEC members would contribute by cutting oil production.