Other major oil-producing nations that are not OPEC members but are pledging to curb production include Bahrain, Bolivia, Brunei, Equatorial Guinea, Malaysia, Sudan and South Sudan.
OPEC plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day. While Saudi Arabia, OPEC’s biggest producer, has agreed to reduce output, Iran, Libya and Nigeria might not follow suit.
It is not often OPEC and non-OPEC producers agree to limit output.
“Markets were also probably impressed by the revelation by the energy ministers of Russia and Saudi Arabia that the OPEC-non-OPEC deal had been in the making for a year now. This is the first agreement between the cartel and other oil producers since 2001, which is probably why analysts are so enthusiastic,” according to OilPrice.com.