Oil-producing nations this morning struck a deal to cut output along with the Organization of the Petroleum Exporting Countries, a pact designed to reduce a global oversupply of crude, lift prices and lend support to economies hurt by a two-year market slump, reports The Wall Street Journal.
The deal will remove about 600,000 barrels a day of crude oil from the market. That would come on top of 1.2 million barrels a day in cuts already agreed to by OPEC, amounting to a total of almost 2% of global oil supply.
Notes The Journal, the deal, if complied with, would represent an unprecedented level of cooperation among oil-producing countries.
It is the first time since the 1970s that a coalition of countries whose oil production amounts to over half of global supply has come together to influence crude prices.
The deal involved 12 countries outside of OPEC. The bulk of the cuts—300,000 barrels a day—are pledged by Russia, which produces more crude oil than any other country. Other output reductions are promised by Oman, Azerbaijan and Sudan, among others.