OPEC Cuts Oil Production, Oil Prices Spike

The Organization of the Petroleum Exporting Countries has agreed to cut its crude-oil production by 1.2 million barrels a day to a ceiling of 32.5 million barrels a day, Mohammed bin Saleh al-Sada, president of the OPEC Conference, announced Wednesday in Vienna, confirming earlier news reports on the deal. Key non-OPEC producers have agreed to cut back their production by 600,000 barrels a day, with Russia taking on half of that cut, al-Sada said. Indonesia, which had rejoined OPEC as a member less than a year ago after a suspension in 2009, has asked OPEC to suspend its membership. Indonesia expressed difficulty in participating in the deal because it is a net importer of oil, al-Sada said. January West Texas Intermediate crude rose $3.93, or 8.7%, to $49.16 a barrel on the New York Mercantile Exchange. Crude oil closed at $49.04 after reaching a high during the session of $49.90.