After two days of tense negotiations in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by non-member producer Russia, reportedly reached a preliminary agreement to cut 12.2 million barrels per day from the oil market.

Riyadh been leading calls for OPEC to trim output to boost the oil market while Russia has been hesitant about its contribution to the cut.

OPEC itself will remove 800,000 barrels from the market, Bloomberg reported, adding that Iran said secured an exemption from cuts as it suffers the effects of US sanctions.

Producers will use October output levels as a baseline for cuts, the news agency reported, noting that the agreement will be reviewed in April. Russia has proposed a contribution equivalent to a 2% reduction from that month, according to one delegate, who said figures are still under discussion. Such a cut would equate to 228,000 barrels a day, Bloomberg calculations show, higher than its initial pitch for no more than 150,000 barrels a day.

 

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