It would be the first time in eight years that the oil cartel would lower production. The agreement was reached on Wednesday at a meeting in Algiers. Oil prices surged more than 5% in reaction.
A global surplus of oil supply caused oil prices to crash over the last two years. And OPEC nations, led by Saudi Arabia, were refusing to lower production, until now.
According to the agreement, OPEC oil production is expected to be reduced to a range of 32.5 to 33 million barrels of oil per day from 33.4 million. Saudi Arabia, the largest oil producer, is expected to give up 350,000 barrels a day, along with other members reducing their output too except, Iran, Libya and Nigeria.