The petroleum cartel said it will slash production by 2.2 million barrels per day in hopes prices will climb back toward $75 per barrel.
Oil ministers attending the Organization of Petroleum Exporting Countries meeting will slash production by 2.2 million barrels per day (b.p.d), the largest single reduction in the group's history and more than expected ahead of the gathering. It follows a November production cut of 1.5 million b.p.d.
Oil prices have plunged since July, when crude traded at $147 a barrel. By midafternoon Wednesday, it was trading at $43.24 on the New York Mercantile Exchange.
"Supply is still somewhat in excess of demand," Saudi Oil Minister Ali al-Naimi told reporters in Oran, Algeria, according to the Associated Press. "To bring things in balance, there will be a cut to the tune of about 2 million barrels."
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