Vienna (Web Desk): Eleven countries have agreed to cut their oil output, teaming up with the OPEC cartel in an exceptional bid to end the world’s glut of crude and reverse a dramatic fall in income.
The first global pact to limit the world's oil supply in fifteen years will move forward after Russia promised to lead major oil producers in curtailing production by removing 300,000 barrels a day of crude from the market.
OPEC’s 14 members together produce about one-third of the world’s oil but the US shale boom has shaken the cartel’s dominance, making a rare global pact crucial in helping the oil market to recovery.
The countries have agreed to the slowdown after OPEC said it would cut its own production for the first time since 2008 in a bid to tackle the global supply glut and lift prices.
OPEC plans to cut 1.2m barrels per day from January for at least six months, which together with the non-OPEC pledge, represents a 2 percent global production cut which would offer a major boost to flagging oil prices.