OPEC agrees to cut output, sending prices to five-week highs

The Organization of the Petroleum Exporting Countries (OPEC) agreed today on a deal in Vienna to cut production for the first time in eight years by 1.2 million bpd to a total of 32.5 million bpd, with the decision to be applied from January 2017.  

U.S. crude futures last traded at $48.71 a barrel, up sharply from the opening price of $45.22, with an intraday low at $45.21, and a five-week low at $49.33. 

OPEC said in the press conference that other producers are ready to cut production by 600 thousand bpd, as Russia expresses its willingness to cut output by 300 thousand bpd. 

The statements also points to the fact that OPEC wasn't pursuing specific policies, but moving along according to markets' movements, specially with the the impact of global politics on crude markets. 

The Organization said the production cut is doable, and won't hurt the members, as it will bring back balance to the markets and prove that OPEC is still the world's leading oil cartel.