OPEC agrees to drop production to 32.5 million bpd

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The members of the Organization of Petroleum Exporting Countries have come to a consensus on cutting oil production inside the group. Bloomberg reports that the largest world crude producers agreed to drop the total output to 32.5 million barrels per day – that is the first OPEC decision to cut production in eight years.

In its publication Bloomberg refers to two delegates, who insist on cutting OPEC production to 32.5 million bpd. They also mentioned that the decision is not public yet. Besides, one of the sources added that the deal will get its final edition in November, after fine tune, with a target-range of 32.5 to 33 million bpd.

The freeze is expected to reduce global crude glut and make oil prices higher.

Earlier today media told that Algeria suggested that OPEC should cut their total production by 796,000 barrel a day, but not all OPEC members are to make equal reductions. Saudi Arabia was to cut production by 442,000 bpd, Iran was allowed to increase the output by 52,000 bpd, while Niger and Libya are supposed to be excluded from the plan.