According to a source quoted by Reuters news agency, The Organization of Petroleum Exporting Countries (OPEC) agreed to set its first limit in production since 2008.
Based on this information, Saudi Arabia and Iran would have agreed to limit production to desirable levels for this cartel.
After the news, Brent crude rose 8%, more than $ 50 a barrel. Saudi Arabia reached an agreement with Iran after insisting that it would fully participate in any cuts.
Before the OPEC meeting, Minister of Energy of Saudi Arabia Khalid al-Falih told Reuters that the meeting would focus on significant cuts and he hoped that Russia and other producers outside OPEC contribute to a reduction in other 600,000 barrels of oil.
Algeria, a member country, proposed that the bloc established a new production ceiling of 32.5 million bpd.
In September, 2016, OPEC, which accounts for one-third of the world’s oil production, reached a preliminary agreement to limit production in an effort to control oil prices since mid-2014.
The agency reiterated that Iran, Libya and Nigeria are exempted from cuts because their production has been affected by riots and sanctions.
Despite this limit, analysts believe that prices could be around $ 35 next year.
According to economist Leiner Vargas, some countries in the region such as Mexico, Trinidad and Tobago, Venezuela, Colombia, Ecuador and Brazil have been affected by these dramatic price falls.