First OPEC and non-OPEC agreement since 2001
A group of 13 countries from outside OPEC agreed to cut output by 562,000 barrels per day. That's just shy of the rumoured 600K barrels from earlier on Saturday but still represents a major win for OPEC and oil bulls; at least if the promises are kept.
Mexico, Kazakhstan, Oman and Russia were all part of the group. The cut adds to the pledged 1.2 mbpd reduction in OPEC quotas announced last week.
Skeptics say that many in the group were facing natural productions declines as fields dry up. Compliance will be critical and there are tremendous levels of distrust in the group.
The other countries who have joined in are:
- Azerbaijan, Bahrain, Bolivia, Brunei, Equatorial Guinea, Malaysia, Sudan and South Sudan.