Venezuela agreed to cut its oil output by 95,000 barrels per day, in keeping with OPEC's production cut deal that aims to put upward pressure on global oil prices, Reuters reported.

"Without prejudicing its international contractual obligations, from Jan. 1 2017, [the state oil company Petroleos de Venezuela SA] and/or its subsidiaries will implement a reduction in the volumes of its main crude sale contracts, all in conformity with existing terms and conditions," the country's Energy Ministry said Dec. 27, according to the report.

Venezuelan President Nicolas Maduro said he is planning a "new formula to fix markets and oil prices" to achieve at least 10 years of stability, but he did not immediately give details on the proposal. Venezuela produces about 2.4 million bbl/d of crude and condensate, Reuters reported, citing ministry data.

Venezuela, whose economy has been ravaged in the two-year-plus downturn in oil prices, is set to join other OPEC members and a number of non-OPEC producers in lowering oil production in the new year. The joint pact, which was reached Dec. 10, is expected to cut production by nearly 1.8 million bbl/d.