In major shift, United States now exports more oil than it ships in

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Yet, the deal Khalid Al-Falih hammered out to reduce production by 1.2 million barrels a day, which sent oil prices soaring on Friday, was based on Saudi Arabia shouldering the lion's share of the cuts.

An Opec official told the waiting press corps, negotiations will continue Friday between the 15-member organisation and non-Opec oil-producing allies, which include Russian Federation and nine countries, to discuss how much each would contribute to supply cuts.

Oil prices jumped about 5 percent to more than $63 a barrel by 1500 GMT as the combined cut of 1.2 million bpd was larger than the minimum 1 million bpd that the market had expected.

Opec and non-Opec producers apparently have agreed to cut crude oil production by 1.2 million barrels per day (Mmbpd), according to delegate sources.

On Thursday, US government figures showed the country had become a net exporter of crude oil and refined products for the first time on record, underscoring how the surge in production has altered the supply equation in world markets. However, with prices below $45/bbl in many onshore USA producing basins, a deceleration in US production growth should help achieve this ultimate goal.

The West Texas Intermediate for January delivery was up 1.12 USA dollars to settle at 52.61 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery rose 1.61 dollars to close at 61.67 dollars a barrel on the London ICE Futures Exchange.

Beyond its internal disputes, OPEC is also contending with vociferous opposition from the US 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.

"Hopefully OPEC will be keeping oil flows as is, not restricted".

"The risk of OPEC+ not being able to agree on a deal was always very high and this will now pressurize prices significantly lower", said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

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US becomes net exporter of oil for the first time in 75 years

OPEC announced Friday that it will reduce overall production among its members by 800,000 barrels a day from October's levels for six months, beginning in January.

The price of crude has fallen nearly a third since October to around $60 a barrel as Saudi Arabia, Russia and the United Arab Emirates raised output to offset lower exports from Iran, OPEC's third-largest producer. As the Trump administration prepared this summer to choke Iran with renewed sanctions, including a ban on oil exports, Saudi Arabia and other big oil producers answered the White House's call to open the spigots to avoid nasty price spikes.

The gathering took place against the backdrop of oil prices having fallen a good 30 percent from more than $86 in early October.

Opec is no more the sole arbiter of global crude dynamics.

Crude prices extended losses Thursday on concerns about oversupply and low demand expected next year.

Production from the United States has also surprised on the upside, with the USA becoming a net exporter of crude and products for the first time in seven decades.

"Even a 1 million bpd cut could lead to a "sell the news" reaction in the short term", Jefferies added. "The fundamentals of the global oil market are still robust", Salameh said.

Furthermore, removing 1.2 million barrels of oil from the world markets will help the prices to go up again and this would help offsetting the value of Iran's lost barrels.

The shale revolution has transformed oil wildcatters into billionaires and the US into the world's largest petroleum producer, surpassing Russian Federation and Saudi Arabia.

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