The Organization of the Petroleum Exporting Countries (OPEC) has reached a deal to limit oil production.
Production is to be reduced to a range of 32.5-33.0 million barrels per day, and the deal is expected to come into force in November, according to Russia’s RT news agency.
“OPEC made an exceptional decision today. After two and a half years, OPEC reached consensus to manage the market,” Iranian Oil Minister Bijan Zanganeh has said on Wednesday, as cited by Reuters news agency.
“We have decided to decrease the production around 700,000 barrels per day,” Zanganeh added.
The cartel estimates its current output at 33.24 million barrels per day.
Reuters reports that OPEC will settle production levels for each member country at the next formal meeting, set to be held in Vienna on November 30. It will be the first reduction in eight years.
One of the sources also told Reuters that after reaching the target production rate, OPEC will turn to non-OPEC producers for output support.
The agreement to cut production among the world's largest oil producers could lead to oil supply coming more in line with the demand for the energy source.
Following the reports of OPEC's decision, the price for futures for Brent crude oil has gone up by nearly 6 percent, to $48.72 per barrel on the ICE stock exchange in London by 6:28 pm GMT.
US energy stocks have also jumped, with the energy sector gaining 3.9 percent, the most among the S&P 500 11 sectors. The benchmark index is up eight points (0.39 percent), the Dow is up 89 points (0.48 percent), and the Nasdaq is up six points (0.13 percent) as of 6:28pm GMT.
Spot gold prices fell 0.4 percent, to $1,322.35 an ounce.
The Dow Jones industrial average rose 0.61 percent and the Nasdaq Composite added or 0.24 percent.
The 14-nation cartel controls around 40 percent of global crude supply.




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