A group of 11 non-Organization of Petroleum Exporting Countries (OPEC) oil producing countries have acquiesced to cut their respective oil outputs in order to boost oil prices.
The group of oil producing states, including Russia, revealed on Saturday that they will cut oil supplies by 558,000 barrels each day.
At the end of November, OPEC revealed that it would be cutting its own production in order to ease the pressures of a global market over-imbued with oil. This is the first time in the past 15 years that such a deal has been made globally.
Speaking to the BBC about the deal, Mohammed Bin Saleh Al-Sada, Qatar’s Energy Minister, described the deal as a “historic agreement”.
OPEC has already pledged to halt the supply of 1.2 million barrels of oil per day beginning in January. After committing to this, it said that it was looking to non-member states to similarly cut output, with Russia showing that it would cooperate with the measures.
These new agreements come after a two-year depression in the oil market, which has seen oil prices fall by more than 50% since 2014.
Other countries that attended a recent meeting at OPEC’s Vienna headquarters include Mexico, Oman, Malaysia and Azerbaijan. Their agreement to cut output levels will help to raise the price of oil, and will likely come as welcome news to oil-based companies like Q8, manufacturer of Q8 Rembrandt EP2.
OPEC will next meet on 25th May, 2017 to check on the progress of this latest deal.