Oil prices jump after OPEC unexpected production cut

OPEC members agreed to reduce their production to 26.3 million barrels a day from 27.5 million barrels a day effective November 1, APA reports.

It represented the first production cut in two years by the OPEC oil cartel, which pumps 40 percent of the world’s oil exports.

Before the meeting, Saudi Arabia’s oil minister, Ali al-Naimi, who is OPEC’s most influential representative, said the oil cartel might consider further trims in its output when it meets next in the Nigerian capital, Abuja, in December.

"What we are trying to do is get the market in balance. There is disequilibrium between supply and demand. We are trying to bring back the market to its normal equilibrium, and the price will take care of itself," Mr. Naimi said.

Oil futures rose in New York after the statement on production cut. Light crude oil futures on the New York Mercantile Exchange closed at $58.50 a barrel, up 1.5 percent.

There may be a possible cut of another 500,000 barrels per day when OPEC next meets on December 14.