OPEC members Wednesday unanimously agreed to lower oil production by 1.2 million barrels per day (bpd) down to 32.5 million bpd.
This is the first production cut by the organization in eight years, and its first intervention in the global oil market since mid-2014 when oil prices began to fall.
At Wednesday’s meeting, members agreed at the cartel's semiannual meeting in Vienna to cap the cartel's total production at 32.5 million bpd, down from 33.64 million in October.
"We came to the understanding that the market needs to be rebalanced," said Mohammed Bin Saleh Al-Sada, president of the OPEC Conference.
The agreement will become effective on January 1, he added.
The adjustments will be applied for six months and will be reconsidered for a six-month extension, Al-Sada said.
The group's decision to cut is based on the desire to raise oil prices and lower excess supply in the market.