Anchor: International oil prices have surged on news that OPEC member nations agreed to cut oil production for the first time in eight years. Experts said that the South Korean economy is likely to suffer in the short term as it imports almost all of its crude oil.
Our Kim In-kyung has more.
 
Report: The Organization of the Petroleum Exporting Countries(OPEC) has struck a deal to cut oil production by as much as 750-thousand barrels a day.
 
Reuters reported that the 14-nation cartel held an unofficial meeting in Algiers Wednesday and decided to reduce crude output from 33-point-25 million barrels a day to 32-point-five million barrels.
 
It is the first time in eight years that OPEC has decided to cut production.
 
The specific limit for each country will be decided at a meeting in Vienna in November. 
 
It is said that OPEC will inform other oil producing countries such as Russia of its decision and discuss the reduction.
 
The news sent international oil prices surging.
 
West Texas Intermediate jumped five-point-three percent to 47 dollars and five cents. Stocks in New York fluctuated for most of the day, but energy companies recorded big gains after reports that a deal was close.
 
For South Korea, which imports almost all of its crude oil, higher oil prices aren't good news, at least in the short term. Professor Yang Jun-sok at the Catholic University of Korea said, however, that there will be room to maneuver as a recovery in the economies of oil producing countries could lead to more demand for construction in the Middle East by South Korean companies.
 
[Sound bite: Professor Yang Jun-sok - Catholic University of Korea (English)]
"A rise in global oil prices, at this time, is not likely to be good news for Korea. While it may help some industries such as petrochemicals and construction, it is likely to reduce Korea's trade surplus or even turn it into a deficit. However, if the price rise can be maintained, it may signal global economic recovery and rising demand in the near future. We'll have to see whether the rise in prices can be maintained."
 
Experts also said that it remains to be seen if oil producing countries will keep their promise to limit output.
Kim In-kyung, KBS World Radio News.