Members of the Organization of countries – exporters of oil (OPEC) agreed to cut oil production to 32.5 million barrels per day. To this agreement, OPEC members came to an official meeting in Vienna on Wednesday, 30 November, reports Bloomberg with reference to the delegate meeting.

The level of production will be reduced by 1.2 million barrels a day, he said, asking not to be named because the decision is still not made public.

On the background of this news the price of oil jumped 7.6% to 49,90 dollars per barrel in London. The price rose after Iran’s Declaration that the country has “good expectations” from the meeting. The agreement is projected to rise above $ 50 per barrel. “The pressure on them is too great, so they can afford not to negotiate,” – said about the participants of the meeting, the President and chief economist Prestige Economics Jason Schenker newspaper The Financial Times.

Official meeting at the headquarters of OPEC began at 12:00 Moscow time. The morning talks ended inconclusively.

Production is declining for the first time in eight years. Limit production at 32.5-33 million barrels per day was installed at an informal meeting in Algiers in late September.

They discussed cutting oil production to 1.4 million barrels per day

Reuters, citing a source close to the negotiations said that the meeting participants discussed a more ambitious reduction than expected by 1.4 million barrels per day.

The Minister of energy of Saudi Arabia Khalid al-falih has previously explained that OPEC is discussing production cuts of up to 32.5 million barrels per day, excluding Libya and Nigeria. The Minister of energy of Venezuela, Eulochio del Pino said that also from the agreement, whatever it is, will be removed in Iran, while Iraq is expected to decrease production.

Bloomberg quoted the oil Minister of Iraq Jabar Ali al-Lahibi, who said that the agreement on production cuts designed for six months. Iraq has not decided on the decrease: in October it produced an average of 4.56 million barrels per day, the country expects to increase prices to $ 55 per barrel or more after reduction.

In Russia have not yet agreed on the volume of production cuts

OPEC expected to reduce oil production from Russia, which had previously stated that they are ready to go for the freezing of production in the case of adoption of the decision by organization to reduce output. The Ministry of energy announced that it will announce its position only after the final decision of OPEC.

According to a source Reuters in the cartel, the countries outside the club OPEC will cut production of only 0.6 million barrels a day, and Russia should account for 0.4 million barrels.

The source of the same Agency in the Ministry of energy of the Russian Federation stated that the proposal for OPEC to cut production in Russia by 0.5 million barrels a day in the office considered excessive.

Source Bloomberg said that if the cartel will come to an agreement, Russia would reduce production by 200 thousand barrels per day.

The meeting in Vienna Minister of energy of Russia Alexander Novak of participation did not accept, and in the Kremlin, commenting on the recent interview of Russian President Vladimir Putin met with President of Iran Hassan Rouhani, was around the theme of reducing oil production.

Bloomberg: OPEC agreed to cut oil production by 1.2 million barrels per day 30.11.2016

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