OPEC and partners agree to 500,000 barrel per day production cut

The OPEC group of oil producing countries and their allies -- including Russia -- agreed on Friday to a production cut of 500,000 barrels per day in addition to their current agreement.

Ministers gathered at OPEC headquarters in Vienna "decided for an additional adjustment of 500 (thousand barrels per day)", effective as of 1 January 2020, according to a statement issued after the meeting.

This would bring production 1.7 million barrels per day below October 2018 levels.

However, the group said that "in addition, several participating countries, mainly Saudi Arabia, will continue their additional voluntary contributions," meaning the overall production cut would be 2.1 million barrels per day.

The statement said OPEC and its partners in the so-called OPEC+ grouping would convene for a special meeting on 6 March.

OPEC members had been aiming for a cut in order to stem pressure on prices from abundant reserves and weak global economic growth.

Oil prices surged following the announcement, with US benchmark WTI and its European counterpart Brent both nearly two per cent higher shortly after 1500 GMT.