Saudi Arabian Energy Minister Khalid Al Falih. Photo: Askin Kiyagan/Anadolu Agency/Getty Images

Russia and OPEC have struck a deal to cut oil production by 1.2 million barrels a day that could make a dent in the oil supply glut, the WSJ reports. Iran scored an exemption from the cuts since it is subject to U.S. sanctions, per Bloomberg.

Why it matters: The agreement reached in Vienna should help prop up prices that have been largely tumbling for roughly two months, a collapse that threatened the finances of Saudi Arabia and other petro-states.

Prices climbed sharply as news of the agreement emerged Friday — by as much as 6%, and trading above $63 per barrel in London, per Bloomberg.

The big picture: Failure to reach a significant deal would have been a major setback for cartel's already diminished ability to influence global markets, which have been re-shaped by the rise of the U.S. into one of the world's three dominant producers alongside Russia and Saudi Arabia.

  • It would have also been a blow to the future of the supply management partnership between Saudi Arabia and Russia (among other OPEC and non-OPEC players) in place for the last two years.

What they're saying: "OPEC, or more precisely Saudi Arabia, has been the head honcho of the oil world for nearly six decades. Yet these days it seems unable to make a decision without Russia’s blessing, let alone without risking the wrath of the U.S. President," said PVM Oil Associates Ltd. analyst Stephen Brennock in remarks quoted by Bloomberg and the WSJ.

What's next: One thing to watch is the reaction of President Trump, who has been publicly urging OPEC not to cut production.

Go deeper

41 mins ago - World

Jeremy Corbyn suspended by U.K. Labour Party over anti-Semitism report

Photo: Christopher Furlong/Getty Images

The U.K. Labour Party has suspended its former leader, Jeremy Corbyn, after a watchdog report found that the party failed to properly take action against allegations of anti-Semitism during his time in charge.

Why it matters: It represents a strong break by Keir Starmer, Labour's current leader, from the Corbyn era and one of the party's most persistent scandals.

U.S. economy sees record growth in third quarter

The U.S. economy grew at a 33.1% annualized pace in the third quarter, the Commerce Department said on Thursday.

The state of play: The record growth follows easing of the coronavirus-driven lockdowns that pushed the economy to the worst-ever contraction — but GDP still remains well below its pre-pandemic level.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Large coronavirus outbreaks leading to high death rates — Coronavirus cases are at an all-time high ahead of Election Day — Fauci says U.S. may not return to normal until 2022
  2. Politics: Space Force's No. 2 general tests positive for coronavirus
  3. World: Taiwan reaches a record 200 days with no local coronavirus cases
  4. Europe faces "stronger and deadlier" wave France imposes lockdown Germany to close bars and restaurants for a month.
  5. Sports: Boston Marathon delayed MLB to investigate Dodgers player who joined celebration after positive COVID test.

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