For the first time in eight years, the Organization of the Petroleum Exporting Countries (OPEC) has agreed to production cuts for global oil inventories. OPEC will reduce oil output production by 1.2 million barrels/day, exempting Nigeria and Libya. Iraq, however, has received its first oil production quotas since the 1990s. Iran, one of the three largest oil producers in the world, is permitted to increase its output to about 3.8 million barrels/day, while Saudi Arabia will reduce output to 10.06 million barrels/day, a 486,000 barrel decrease. Iraq has also agreed to cut oil production by 210,000 barrels/day, and the UAE and Kuwait will also decrease output by 139,000 barrels/day and 131,000 barrels/day, respectively. In 2016, OPEC received $341 billion from oil exports, down 54.7% from $753 billion in 2014. OPEC will meet again next year in May in order to decide whether to extend production cuts for another six months.

Source: Bloomberg