After OPEC agreed to cut production, the non-OPEC oil producers have also agreed to cut output to boost oil prices, marking a deal between them after 15 years.
11 non-OPEC members, including Russia, will cut their output by 558,000 barrels per day as per the agreement. After the agreement, Qatar's Energy Minister said, “I am happy to announce that a historic agreement has been reached,” at OPEC’s Vienna headquarters.
The OPEC countries last month reached an agreement to cut production by 1.2 million barrels per day from January next year.
With the long-standing deal agreed to, the involved countries – Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan and South Sudan will seek to comply with the proposal. Of them, Oman promised to cut output by 45,000 bpd, while Kazakhstan would trim down its output by 20,000 bpd.
Among the non-OPEC oil producers, Russia will play a crucial role in the agreement after failing to abide by a deal on reduced production in 2001. Nigeria and Libya were exempted from the deal due to a civil conflict. After inclusion of these countries failed to deliver the promise, OPEC leader Saudi Arabia would have to bear the additional production cuts.