Opec has agreed to cut oil production for the first time since 2008 as it seeks to rebalance the global oil market.

“In summary, the agreement is that Opec reduces approximately 1.2 million barrels a-day [b/d] to bring its ceiling to 32.5m b/d effective 1 January 2017. After these long discussions, we agreed also to share that reduction among Opec countries,” said Mohammed bin Saleh al-Sada, Qatar’s Energy and Industry Minister and President of the Conference at a press briefing in Vienna on 30 November.

According to Opec, Opec production in October this year was 33.643m b/d.

Full details of the production cuts that will be made by each country will be published later. Al-Sada said that Saudi Arabia will cut production by 486,000 b/d. In October this year Saudi production was 10.532m b/d

The Opec production cuts will be made in tandem with a reduction in output from selected non-Opec oil exporters.

“This agreement is subject to the 600,000 b/d reduction from key non-Opec producers and through our discussions we received, with key non-Opec countries, we received support and pledges to contribute to that 600,000 [b/d] in addition to the 1.2 [m b/d] from Opec and I am glad to report that the Russian Federation already committed to reduce by 300,000 b/d, other countries have also shown commitment, and we will call for a meeting to finalise this very element,” said Al-Sada.

The production cut agreement has led to early gains in the price of oil. Brent crude is now trading at over $50 a-barrel for the first time since October.