STREAMING NOW: Watch Now

OPEC and Russia pledge to cut oil production

OPEC and its allies reached a deal to slash oil production despite pressure from President Donald Trump to keep pumping. Iran, Venezuela and Libya have been granted exemptions from the cuts.

Posted: Dec 8, 2018 5:25 PM
Updated: Dec 8, 2018 5:40 PM

OPEC and its allies reached a deal to slash oil production on Friday despite pressure from President Donald Trump to keep pumping.

The cuts will remove 1.2 million barrels a day from world markets, UAE energy minister and OPEC president Suhail Al Mazrouei told reporters. US crude prices spiked nearly 5% to $54 a barrel on the news.

Members of OPEC pledged to reduce their production by 800,000 barrels per day for six months beginning in January. Russia, and other producers outside the cartel, promised to slash an additional 400,000 barrels per day.

OPEC members Iran, Venezuela and Libya have been granted exemptions from the cuts.

The deal, which should help eliminate excess supply, caps a turbulent week for OPEC that started with a decision by Qatar to leave the cartel.

On Thursday, OPEC members emerged from a first day of negotiations in Vienna without a consensus on production cuts. A press conference was canceled and crude prices dropped.

Oil prices have crashed since October

Discussions on Friday included Russia, the world's second biggest oil producer and a key partner since 2016 in OPEC efforts to balance oil supply and demand.

Both sessions were overshadowed by Trump's repeated calls to keep output steady.

But OPEC is trying to stabilize oil markets after US crude prices plunged 22% in November, marking the the worst month since the global financial crisis in 2008. World oil prices are down by about 31% since early October.

The Vienna meetings focused on how much production OPEC and Russia would cut, and how the reductions would be shared among the wider group.

Saudi Arabia's energy minister Khalid Al-Falih said that the group's decision to slash production was made out of economic necessity and was "not driven by any political agenda."

"When you consider the complexity and the number of variables at play, I am quite pleased that we were able to finish on Friday and go home for the weekend," he told reporters.

Relief for US oil companies

Asked about pressure from Trump, Al-Falih said that oil companies in the United States would appreciate the group's efforts.

"I know for a fact that oil and gas producers in the United States are probably breathing a sigh of relief that we are providing some certainty and visibility for 2019," he said.

Global markets are awash with oil. The United States is pumping at record levels and recently surpassed Russia and Saudi Arabia for the first time since 1973 as the world's largest producer.

Meanwhile, Iran is still selling crude despite sanctions. The United States surprised OPEC and other producers by granting waivers to eight countries to continue buying Iranian oil after it reimposed sanctions in November.

Saudi Arabia and others had agreed back in June to pump more oil, partly to make up for lost Iranian supplies and prevent prices spiking to $100 a barrel.

"The last six months we have demonstrated that we are not just in the business of cutting, we are also in the business of releasing supplies when needed," said Al-Falih.

"I think many people underestimate the impact we've had on the global economy," he added.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 50300

Reported Deaths: 2748
CountyConfirmedDeaths
Marion11920692
Lake5432248
Elkhart347058
Allen2902133
St. Joseph205169
Hamilton1665101
Cass16449
Hendricks1446100
Johnson1325118
Porter80238
Tippecanoe7599
Clark68144
Vanderburgh6816
Madison67264
LaPorte60527
Howard59458
Bartholomew59345
Kosciusko5704
Marshall5308
Noble50128
LaGrange4829
Jackson4783
Boone47444
Delaware46952
Hancock46036
Shelby43525
Floyd40444
Morgan33631
Monroe32928
Grant30926
Dubois2976
Henry29717
Montgomery29720
Clinton2893
White26810
Decatur25532
Dearborn25423
Lawrence25225
Vigo2478
Warrick24329
Harrison21722
Greene19332
Miami1922
Jennings17912
Putnam1728
DeKalb1674
Scott1639
Wayne1536
Daviess15017
Perry1459
Orange13723
Steuben1362
Jasper1332
Franklin1278
Ripley1277
Wabash1152
Carroll1132
Gibson1132
Fayette1057
Whitley1045
Newton10010
Starke983
Huntington932
Randolph794
Wells791
Jefferson782
Fulton731
Jay680
Washington681
Knox670
Clay665
Pulaski661
Rush613
Posey550
Owen521
Benton510
Spencer501
Adams491
Sullivan471
Brown431
Blackford402
Fountain352
Crawford330
Tipton321
Switzerland300
Martin240
Parke230
Ohio220
Vermillion200
Warren151
Union130
Pike110
Unassigned0193

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 62856

Reported Deaths: 3032
CountyConfirmedDeaths
Franklin11433443
Cuyahoga8786393
Hamilton6563207
Lucas2889305
Marion274039
Montgomery237835
Summit2299209
Pickaway221641
Mahoning1907239
Butler176747
Columbiana135060
Stark1196114
Lorain109769
Trumbull103277
Warren94525
Clark79310
Delaware67515
Fairfield64317
Tuscarawas60110
Lake57022
Belmont56722
Medina56632
Licking56012
Miami50331
Portage48759
Wood47451
Clermont4537
Ashtabula44544
Geauga42543
Wayne37253
Richland3635
Allen34841
Greene3229
Mercer29510
Erie26722
Holmes2575
Darke25326
Huron2382
Madison2139
Ottawa16624
Sandusky15715
Washington14420
Coshocton1413
Ross1393
Crawford1385
Putnam13415
Hardin12312
Morrow1211
Athens1111
Auglaize1094
Jefferson1052
Muskingum961
Union931
Monroe8917
Hancock851
Lawrence820
Preble821
Hocking809
Clinton791
Guernsey793
Shelby744
Williams742
Logan681
Fulton660
Scioto650
Carroll643
Ashland632
Wyandot625
Brown601
Fayette550
Defiance533
Knox531
Champaign511
Highland491
Van Wert451
Perry411
Seneca402
Henry330
Paulding280
Jackson270
Pike270
Adams251
Vinton232
Gallia201
Noble130
Harrison121
Meigs120
Morgan120
Unassigned00
Fort Wayne
Clear
73° wxIcon
Hi: 86° Lo: 64°
Feels Like: 73°
Angola
Clear
70° wxIcon
Hi: 82° Lo: 63°
Feels Like: 70°
Huntington
70° wxIcon
Hi: 86° Lo: 63°
Feels Like: 70°
Decatur
Clear
72° wxIcon
Hi: 85° Lo: 64°
Feels Like: 72°
Van Wert
Clear
72° wxIcon
Hi: 86° Lo: 64°
Feels Like: 72°
Sunday starts wet, ends dry
WFFT Radar
WFFT Temperatures
WFFT National

Community Events