The Organization of Petroleum Exporting Countries (OPEC) and its allied oil producing nations (OPEC+) have agreed for output cuts to boost global oil market balance and stability. Saudi Arabia’s Ministry of Energy said on its Twitter account today.
“The agreement will come into effect starting January 2019 and will be reviewed in April.“ the ministry added.
OPEC and its allies agreed to reduce oil production by 1.2 million barrels per day (bpd) for the first six months of 2019 in a meeting in Vienna last week.
The 15-member OPEC cartel has agreed to trim its output by 800.000 bpd. while Russia and the allied producers will contribute a 400.000 bpd reduction.