Oil prices rise as OPEC agrees on output cuts

The Organization of the Petroleum Exporting Countries (OPEC) has agreed to cut 1.2 million barrels of oil a day from its output to 32.5 million barrels beginning from January. This has lead to a surge in the global oil prices. This is the first such cut made by OPEC in the last eight years. OPEC plays very important role in the determination of Global oil prices. OPEC raises the oil price by agreeing to reduce production.

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of twelve oil-producingcountries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.