There has also been fears that the deal between OPEC countries could increase the resonance of US President Donald Trump, who appealed not to cut crude production and keep prices low. Initially, an Opec report indicated that in order to stabilise the crude markets, an output cut of somewhere around 1.5m bpd was required.
The U.S. sold overseas last week a net 211,000 barrels a day of crude and refined products such as gasoline and diesel, compared to net imports of about 3 million barrels a day on average so far in 2018, and an annual peak of more than 12 million barrels a day in 2005, according to the U.S. Energy Information Administration.
The meeting between OPEC and non-OPEC members was coming at a crucial period when the oil market sank close to the bottom, with oil prices declining by nearly 30 per cent in the last two months.
The group's control over oil markets has been severely eroded by the rise of US oil production, which has been able to hum along at prices below the levels preferred by countries like Saudi Arabia and Russian Federation (see related story).
As oversupply rises with the US, however, Russian Federation and Saudi Arabia pumping oil at record levels, crude prices slumped more than 30 percent in the last two months.
Marlboro owner Altria makes £1.4bn bet on cannabis
With U.S. smoking rates falling fast, Richmond, Virginia-based Altria is under pressure to find new avenues to expand. Altria had been assessing market opportunities in the cannabis industry since at least September.
Beyond its internal disputes, OPEC is also contending with vociferous opposition from the USA president, who's taken to using his Twitter account to berate the group's policies and sees low oil prices as key to sustaining America's economic growth.
Sarah Ladislaw, head of the energy and national security program at the Center for Strategic and International Studies, knocked down the idea that being a net exporter would free the USA from global market dynamics. Because these countries control such a large share of the total oil market, OPEC has an incredible amount of power when it comes to regulating prices.
"Iran, Libya and Venezuela will be effectively exempt from the cuts, though the text of the deal will say they received 'special considerations, ' Iraqi oil minister Thamir Ghadhban said".
"U.S. political pressure is clearly a dominant factor at this OPEC meeting, limiting the scope of Saudi actions to rebalance the market", said Gary Ross, chief executive of Black Gold Investors and a veteran OPEC watcher.
Global benchmark February Brent crude LCOG9, +1.46% advanced 65 cents, or 1.1%, at $60.85 a barrel on ICE Futures Europe.
On the other hand, the USA and China moving toward less tense relations, as well as the eight countries which are granted sanction waivers to continue buying Iranian oil all and all are factors which point to a more desirable position for Iran's oil industry in the future. "For most nations, self-interest ultimately prevails", she said.
Members of the Organization of countries-exporters of oil (OPEC) today, December 6, came to preliminary agreement on the reduction of oil production.
While ministers met on Wednesday, Trump tweeted that the "world does not want to see, or need, higher oil prices!" Analysts had forecast a decline of 2.39 million barrels. Madan Sabnavis, chief economist at Care Ratings, said that while OPEC's production cuts will definitely lead to a rise in oil prices, the extent will depend on the combination of demand from non-US consumers, especially China, inventories and domestic demand in the United States, given the onset of winter, and supply from non-OPEC nations.