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OPEC News - Agrees To Cut Oil Production, As Do Russia, Azerbaijan

This just in from Research Capital analyst, Bill Newman:

OPEC announced a 2.2 million bbl/d production cut which is the largest cut ever made by the group.
  • Non-OPEC members, Russia and Azerbaijan have also agreed to cut production by up to 300,000 bbl/d each.

  • Total combined cut of 2.6 million bbl/d.

  • The cuts are effective January 1, 2009

  • The key to short term oil prices is compliance to quotas.

  • 85% or above compliance should be supportive to crude prices.