OPEC finally agreed to cut oil production at its Nov. 30 meeting in Vienna. The decision was preceded by months of intense negotiations against the backdrop of dramatically declining oil prices since mid-2014. The talks in Vienna were complemented by intense telephone diplomacy involving Iran and Saudi Arabia as well as major non-OPEC producer Russia.
Overall, the cartel’s members pledged to cut production by some 1.2 million barrels per day (mbpd) from January onward. Several non-OPEC producers are joining the endeavor, with Russia and others adding some 0.6 mbpd to the cut.