OPEC Announces Record Production Cut
OPEC agreed Wednesday to slash production by 2.2 million barrels per day -- one of its biggest production cuts ever -- in an effort to offset the falling price of oil.
The cut, which goes into effect Jan. 1, comes on top of existing reductions of 2 million barrels per day (bpd) agreed to by the 12-member Organization of the Petroleum Exporting Countries at its last two meetings. It lowers the group's supply target to 24.845 million bpd.
News of the cuts in crude production failed to boost oil prices Wednesday. Light, sweet crude for January delivery fell nearly 5 percent, or $2.07, $41.53 on the New York Mercantile Exchange.
Crude oil prices have plummeted more than 70 percent from summer highs of nearly $147 per barrel.
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