Oil prices climbed on Friday as the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to deepen production cuts.
The West Texas Intermediate for January delivery settled 77 cents higher at 59.20 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for February delivery rose 1 dollar to close at 64.39 dollars a barrel on the London ICE Futures Exchange.
OPEC and its allies agreed to steepen production cuts by an additional 500,000 barrels a day, bringing the total cuts to 1.7 million barrels daily, according to a statement released by OPEC on Friday.
This additional adjustment would be effective as of Jan. 1, 2020 and is subject to full conformity by every participating country, said the statement.
The OPEC, Russia and other producers have been largely limiting oil output since 2017 in order to boost prices.
In July, the alliance agreed to extend a production cut of 1.2 million barrels a day for nine months. The pact runs through March 2020.
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