OPEC ministers confirmed it had secured a cut in its oil production from 33.8 million barrels a day (b/d) to 32.5 million b/d in an effort to prop up prices.
In a press conference after the meeting, OPEC said it will reduce production by 1.2 million barrels per day from January 1, 2017.
Brent crude had spiked over 8 percent in anticipation of a cut today and was trading at USD 48.97 a barrel.
In its meet in September in Algeria, OPEC had suggested a deal to cut production.
Iraq will be reducing output by 200,000 bpd to 4.351 million bpd while non-OPEC member Russia will cut its output by 300,000 bpd.
OPEC will meet non-OPEC members in December again to discuss the situation.
The committee also said that Kuwait, Venezuela and Algeria will monitor compliance of the agreement.
The committee will meet again on May 25 to discuss and review the agreement. Depending on the situation that time, it could also extend it for another six months.
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