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.