Vienna [Austria]: In an aim to boost global oil markets, member countries of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies on Friday decided to slash crude oil production by 1.2 million barrels per day.
The agreement is set to be implemented in January 2019, Xinhua reported.
The 15-member group agreed to cut crude oil output by 800,000 barrels per day, while Russia and its allied producers would slash oil production by around 400,000 barrels per day.
Prior to the meeting, Saudi Arabia, the de facto leader of the OPEC, had said that the group would "seriously consider" the views of Prime Minister Narendra Modi and United States President Donald Trump on lowering global crude oil prices.
On Wednesday, Trump had urged OPEC countries to keep oil production stable so that its prices remained low in the near future. "Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!", the US President had tweeted.
The crucial meet came at a time when the global oil market is unstable in the aftermath of the economic sanctions imposed on Iran by the US government, thereby stifling Tehran's crude supplies.
Crude rates skyrocketed to a four-year high of USD 86 per barrel in October. But since then, the price spiralled down to about USD 60 per barrel.
The OPEC comprises 15 oil-producing nations and comprises Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Congo, Saudi Arabia, United Arab Emirates, Venezuela, and Qatar. They account for more than half of the world's oil output.
However, Qatar will pull out from the group in January 2019, as it wants to focus on its efforts to increase its natural gas production.