Non-Opec oil producers have agreed with Opec to cut production by about 600,000 barrels a-day in January. The agreement was finalised at a meeting in Vienna on Saturday 10 December.

The agreement, which is the first between Opec and non-Opec nations in 15 years, follows the deal announced on 30 November by Opec members to cut production by 1.2 b/d from 1 January 2017. 

The agreement between Opec and several non-Opec oil exporting countries was widely expected and Russia had already agreed to cut production by 300,000 b/d. The new Opec ceiling will 32.5m b/d from January, and will be in place for six months. 

The majority of Opec countries agreed to cut production by about 4.5 per cent. In terms of barrels a-day, Saudi Arabia will make the largest cuts with a 486,000 b/d reduction in output.

The cuts to global production are expected to stablise the oil price and possibly lead to some price strengthening as the global glut of oil is depleted.