Investing.com - Oil prices rallied to multi-week highs after the Organization of the Petroleum Exporting Countries agreed on its first production cut since 2008 on Wednesday, aimed at reducing a global supply overhang that has seen prices more than halve since mid-2014.
The 14-member cartel is responsible for a third of global oil production, or 33.6 million barrels per day. The deal will see output cut by 1.2 million bpd from January 2017.
Saudi Arabia undertook the largest cut, slashing output by 486,000 bpd and dropped its demand that Iran cut its output, in a deal that was seen as a victory for Tehran.
The group said it would reassess the effectiveness of the deal after six months.
The agreement also included coordinated action with non-OPEC members, including Russia, who are expected to decrease production by 600,000 barrels a day.
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