Oil producers have been under pressure to reduce production following a sharp fall in oil prices over the past couple of months. The price of oil has fallen about 25 percent recently because major producers, including the U.S. which is not party to the agreement, are pumping oil at high rates.
Iraq’s representative in OPEC says the oil cartel has agreed to a proposal that will see global oil production reduced by 1.2 million barrels a day.
According to Thamir Ghadhban, the proposed cut would be made up of 800,000 barrels per day from OPEC countries and 400,000 barrels from non-OPEC nations.
The proposed cut was in line with the 1 million to 1.3 million barrels per day expected by analysts.