WASHINGTON (dpa-AFX) - Crude oil prices surged higher on Friday after OPEC and non-OPEC members reached an agreement to cut crude production next year.
Oil prices had stayed weak early on in the session amid doubts over whether the OPEC will decide on a reduction in crude oil production.
On the third day of their meeting in Vienna, OPEC members decided to reduce oil production by a total of 800,000 barrels per day, from October levels. Non-OPEC nations, led by Russia, agreed to reduce output by 400,000 barrels per day. The proposed reduction of 1.2 million barrels per day, is much more than the anticipated cut of about 1 million barrels per day.
Earlier, there was talk of a 1.4 million barrel cut, but media reports suggested that Saudi Arabia was keen for a cut of only 1 million barrels.
According to reports, the agreement is for six months, with a review scheduled in April 2019.
Crude oil futures for January ended up $1.12, or 2.2%, at $52.61 a barrel.
On Thursday, crude oil futures settled at $51.49 a barrel, down $1.40, or 2.7%, from Wednesday's close. For the week, crude oil futures gained about 3.3%.
Higher crude production from the U.S., possible drop in crude oil demand in the near term due to the ongoing trade war between the U.S. and China and the Trump administrations decision to allow eight top buyers of crude oil to continue buying oil from Iran, all contributed to Oil's sharp slide in recent weeks.
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