At the meeting that was held in Vienna last Friday, the members of the Organisation of the Petroleum Exporting Countries (Opec) and its allies including Russian Federation committed to lessening their oil production by a higher-than-expected 1.2m barrels per day.
"OPEC group countries are contributing 800,000 barrels per day as a cut, and the non-OPEC (countries) will be contributing 400,000 barrels per day", Emirati Oil Minister Suhail Mohamed al-Mazrouei said at a news conference.
The reduction was larger than the 1 million bpd cut that analysts had expected.
For the non-OPEC, the decision to adjust its output come January 2019 for an initial period of six months was as a result of prospects of a growing imbalance between global oil supply and demand in 2019.
"OPEC, or more precisely Saudi Arabia, has been the head honcho of the oil world for almost six decades; yet these days it seems unable to make a decision without Russia's blessing, let alone without risking the wrath of the US president", said Stephen Brennock, an analyst at PVM Oil Associates in London.
The deal between OPEC's 15 member states and allied states led by Russian Federation was reached at a meeting between OPEC and global oil producers in Vienna, Austria on Friday.
The Saudis at first denied that the meeting, an unprecedented development ahead of an OPEC summit, ever took place. He said service companies "have all been on the edge of our seat watching OPEC". Iran said that it has been exempt from the deduction because it is already facing American sanctions.
A bipartisan group of USA senators has vowed to sanction Saudi Arabia after a briefing by CIA Director Gina Haspel convinced them the Saudi crown prince ordered the killing, which took place October 2 in the Saudi Consulate in Istanbul.
Speaking to reporters at the end of the session, Iran's Petroleum Minister Bijan Zangeneh expressed his satisfaction with the decision. In this way, he managed to persuade Saudi Arabia and Iran, which was considered the hardlinest opposition.
Producers will use October production levels as a baseline for cuts and the agreement will be reviewed in April.
"The commitments made under this proactive collaboration between participating countries are to be voluntarily implemented, non-binding and would not in any way affect the rights of peoples and nations to permanent sovereignty over the exploitation and management of their natural resources", he said. He called the move a "relief" that OPEC and allies were able to agree to the coordinated cuts.
Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. The United States is not part of any output-limiting initiative due to its anti-trust legislation and fragmented oil industry.