>> An informal OPEC meeting in Algeria taking the global energy markets by surprise. OPEC reaching its fist deal to cut productions since 2008, sending beaten down oil prices rallying. Reuter correspondent Jessica Resnick-Ault, reports on the energy markets.>> I think the drama really comes from the fact that this is a change, that these parties were able to sit down in a room and strike an agreement or, at least a tentative agreement.
Which is really a departure from the past two years when there's been a real discord in OPEC with certain countries really agitating for a deal, and to curtail production, and boost prices while other countries have tried to keep production steady in hopes of allowing the market to rebalance itself.
>> Sources telling Reuters, OPEC would reduce output to 32.5 million barrels per day from the current 33.2 million barrels. The main power players? Saudi Arabia and Iran.>> The conventional wisdom is that Saudi Arabia has really held the cards in OPEC during the past two-year long route, that they've been really behind the decision to keep production quite so high.
At this point though, another key player is Iran.>> Iran has argued it should be exempt from such limits as its production recovers after the lifting of EU sanctions earlier this year. It's not clear yet how these two powers made the deal. But what is known, is that lower oil prices have crippled the economies of the nations that depend on selling oil.
And finally, OPEC was forced to respond. The market reaction was intense. Airline stocks turned negative on the prospect of higher oil prices, while shares of energy companies like ExxonMobil soaring on the news.>> Energy markets are going crazy. They've been up More than 5% today. US oil, and gasoline, and diesel have all followed this news straight up.
>> Sources say details, such as, how much oil each country will produce, is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non OPEC countries, such as Russia.