Oil production to be curbed after Opec agreement reached

Oil production to be curbed after Opec agreement reached

Members of Opec have reached a preliminary agreement to curb oil production for the first time since the global financial crisis eight years ago, immediately pushing up prices.

Mohammed Bin Saleh Al-Sada, Qatar's energy minister and current Opec president, announced the deal after several hours of talks on Wednesday in the Algerian capital Algiers.

The preliminary deal will limit output from the Organisation of the Petroleum Exporting Countries to 32.5 million barrels per day, he said. Current output is estimated at 33.2 million barrels per day.

Disagreements between regional rivals Saudi Arabia and Iran had dimmed hopes for a deal.

Algerian officials had said participants reached a "pre-accord" on production curbs to be finalised at an Opec meeting in Vienna in November.

As news of the impending deal circulated earlier on Wednesday, benchmark US crude jumped $2.38, or 5.3%, to $47.05 a barrel in New York.

Brent crude, the international standard, was up $2.72, or 5.9%, to $48.69 a barrel in London.

Iran would not have the same proportional reductions as other countries under the pre-accord but would limit production to 3.7 million barrels a day, according to an adviser to Algeria's energy minister. It is currently estimated to be pumping around 3.6 million.

More on this topic

Crude oil predicted to hit $70 next yearCrude oil predicted to hit $70 next year

Rylance's decision to quit British theatre company over BP ties ‘inspired by Greta Thunberg’ Rylance's decision to quit British theatre company over BP ties ‘inspired by Greta Thunberg’

London's National Theatre ends Shell partnership as it addresses environmental impactLondon's National Theatre ends Shell partnership as it addresses environmental impact

Plan to ban oil explorers slammed as illogicalPlan to ban oil explorers slammed as illogical

More in this Section

Chile protests continue after government backs down on fare hikeChile protests continue after government backs down on fare hike

Serious Fraud Office closes Libor rigging investigationSerious Fraud Office closes Libor rigging investigation

Johnson insists EU free trade agreement can be struck amid no-deal Brexit fearsJohnson insists EU free trade agreement can be struck amid no-deal Brexit fears

IDA Ireland: Era of optimism with growth evident in all sectorsIDA Ireland: Era of optimism with growth evident in all sectors


Lifestyle

It’s the personal stories from Bruce Springsteen that turn his new ‘Western Stars’ documentary into something special, the director tells Esther McCarthy.Bruce Springsteen's Western Stars documentary more than just a music film

Apart from the several variations in its spelling in Irish and English, Inishtubbrid, Co Clare is also recognised by three other names: Wall’s Island; O’Grady’s Island and Inishtubber which surely puts it up there as the island with most names — not counting say Inisvickillane, Co Kerry which has about 33 variations to that spelling.The Islands of Ireland: In search of tranquility

More and more communities and volunteers are taking on environmental tasks around the country. In Clonmel, Co Tipperary, for example, people have united to get rid of Himalayan balsam, an invasive plant, from the banks of the River Suir.‘Bashing’ invasive plants

Halloween has become a consumer fest in recent years but there are a number of ways to reduce costs and waste — and make itHappy sustainable Halloween: Don’t be horrified with the waste at Halloween

More From The Irish Examiner