OPEC cut production by 2.2 million barrels of oil per day in the largest reduction history

The Organization of Petroleum Exporting Countries (OPEC) at a ministerial meeting in Algiers decided to reduce its oil production rate of 2.2 million barrels per day.

This is the greatest reduction in production in the history of OPEC, which has 13 member countries and produces approximately 40% of the world’s oil.

The decision comes after oil prices slump below 50 $ a barrel early last month, after the price of a barrel last July record peak was 147$, which reduced many of the revenues of the Organization of oil.

It is expected that Russia, the non-member of the Organization, to follow the example of OPEC and reduce production rate of 350 thousand barrels per day after a similar reduction last month.

 
Prior to the announcement of the OPEC oil prices recorded a slight rise by one dollar, as it is expected to respond to market quickly, but without jumps due to economic slowdown and weak global demand for oil.

 
Saudi Oil Minister Ali Naimi, the oil supply still exceeds demand and that inventories are higher than normal, adding that a balance had to cut about two million barrels per day at this meeting.

 
Naimi said that his country reduced its oil production by 1.2 million barrels per day between August and November, bringing average daily output 8.5 million barrels per day from 9.7 million barrels a day.

 
Saudi minister expected oil-producing countries outside OPEC to cooperate in reducing production by 600 thousand barrels a day to stop the collapse in oil prices globally.