The Organisation of the Petroleum Exporting Countries (OPEC) has agreed to cut oil production starting from 2017.
The resolution to cut production was taken at the 171st meeting of the group in Vienna, Austria.
Countries under the organization will now take a cut of 1.2 million barrels per day from January 1, 2017 with the aim of increasing the price of crude oil.
Nigeria was however exempted from the cut due to pipeline vandalism being experienced.
Qatari Minister of Energy and President of OPEC, Mohammed Bin Saleh Al-Sada, said at a press conference Wednesday that “We have made a great success today”.
“With the co-operation and understanding of all member countries, we have been able to reach an agreement,” he said.
“This agreement comes from a sense of responsibility for OPEC member companies, and for non-OPEC member countries, and the health and wellbeing of the world economy.”
The new cut is expected to help countries like Nigeria and Iraq.