OPEC to limit oil production, Iran exempt from cut plan

After hours of talks behind closed doors, OPEC members decided to reduce oil production to improve prices and oil market.

OPEC reached a consensus to scale back production to between 32.5 million and 33 million barrels a day, down from 33.2 million barrels a day in August.

Accordingly, Iran, Libya and Algeria will be excluded from any OPEC output cut pan.

The Iranian oil minister, Bijan Zanganeh, said he was optimistic that an agreement would be reached among OPEC members.

Meantime, one of the big surprises from today’s OPEC meeting was that Indonesia was booted from the cartel.

The country’s output quota is said to have been redistributed to some of the remaining OPEC members.

OPEC delegates also said that removing Indonesia does not affect the cut size, while stressing that the cartel will now have a new output floor.

Saudi Arabia will also limit output to 10.058 million barrels a day, down from previous 10.560 million barrels a day, Reuters quoted an informed source. 

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