OPEC output cut deal to boost market, says Al-Falih

The deal reached by The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday will help shore up the global oil market, Saudi Arabia’s minister of energy Khalid Al-Falih said on his Twitter account.

He added that an agreement with Russia and other non-OPEC members would be announced soon.

The oil cartel agreed on Wednesday to reduce output from January by around 1.2 million barrels a day bbl, or 4.5 percent, to 32.5 million bbl.

Non-OPEC producers are expected to cut production by 600,000 bpd. 

“The Russian Federation has already committed to reduce 300,000 bpd. Other countries have also showed commitment and we will call for a meeting to finalize this element,” OPEC president and Qatar’s ministry of energy Mohamed Bin Saleh Al-Sada told reporters after Wednesday’s meeting.

West Texas Intermediate (WTI) crude last traded on Thursday at $49.93 bbl, up 1 percent. Brent crude jumped 8.82 percent to $50.47 bbl.