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OPEC has reached an understanding at a meeting in Algiers to cut crude-oil-production cut but they will wait until November to set the exact level of cuts.
According to The Wall Street Journal, a consensus was reached after a 4 1/2 hour meeting. OPEC, the 14-nation cartel that controls over a third of world oil output, has been producing at record levels.
A person familiar with the matter said the cartel was considering cutting production to between 32.5 million barrels a day and 33 million barrels a day—down from August levels of 33.2 million barrels a day.
Exactly how the production cuts would be achieved is unclear. The person said a committee would be formed to study how to carry out the cuts and then report to the cartel at its next meeting on Nov. 30 in Vienna.
“Today, an exceptional decision was made at OPEC,” Iran’s oil minister, Bijan Zanganeh, told reporters after the meeting, according to Iranian state media service Shana.
Oil climbed more than 4.5% after the news.