Major News | OPEC reaches production cut agreement; oil prices soar!

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On Wednesday (September 28), OPEC held an informal meeting in Algiers and decided to reduce daily oil production to between 32.5 million and 33 million barrels, with the production cut plan to take effect in November. Under this plan, OPEC members other than Libya, Nigeria, and Iran will reduce production by 1.6% based on their average production levels from January to August. Iran has been allowed to increase its production to 3.7 million barrels per day, slightly above the level in August; the country’s production ceiling is determined based on the average figures from 2001 to 2011. The document also shows that Saudi Arabia’s new production target is 10.145 million barrels per day. And due to reasons such as civil wars, Nigeria and Libya have also been “excluded due to special circumstances”. Finally, OPEC reached an agreement to limit oil production! International oil prices soared immediately, with WTI rising to $47.05 and Brent crude rising to $48.69. Some experts predict that international oil prices could exceed $60 by November!