Business

SINGAPORE (Web Desk/APP) Oil prices surged after the OPEC producers’ group surprised the market with a deal to slash production on Thursday.

According to details, at the closing of six hours of negotiations and weeks of horse trading, OPEC announced the plan to cut production to a level of 32.5 33 million barrels per day (bpd) from 33.47 billion, bpd in August, the International Energy Agency (IEA) stated.

The informal meeting was halted on the sidelines of an IEA meeting in a bid to stabilize prices that have been buffeted by a stubborn supply glut since 2014.

Oil prices soared by as much as six percent following the news and continued gains in Asian trade on Thursday although at a more sluggish rate.

The decision to cut output caught the market off-guard.

Market watchers had been pessimistic about a snub or a freeze after similar efforts fell apart in April due to disagreements between OPEC majors Saudi Arabia and Iran.