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The crude oil output of the Organization of the Petroleum Exporting Countries (OPEC) fell 640,000 barrels per day (bpd) in January to 28.35 million bpd amid the new output cut deal, the departure of Ecuador from the group and the unrest in Libya, Reuters reported on Friday.

“A new production cut agreement by OPEC and allies including Russia started on Jan. 1. The deal deepens an existing supply curb of 1.2 million barrels per day by 500,000 bpd. OPEC’s share of the 1.7 million bpd cut is 1.17 million bpd,” Reuters explained.

Crude oil reaction

The barrel of West Texas Intermediate (WTI) rebounded modestly on this headline and it was last seen trading at $52.15, earning 1.45% on a daily basis.