OPEC and its allies agree to cut oil production by record amount

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OPEC, Russia and other oil-producing countries, collectively known as OPEC +, have reached a tentative agreement to reduce oil production by 9.7 million barrels per day due to the pandemic of coronavirus.

Talks between countries had hit a last-minute hurdle last week when Mexican President Andrés Manuel López Obrador seemed reluctant to cut production levels in his country. But Mexico’s energy secretary confirmed on Sunday that an agreement had been reached.

President TrumpDonald John TrumpWaPo: Trump would have asked Fauci if officials could let the coronavirus “invade” the United States Supreme Court in Kansas confirms an order prohibiting the religious services of more than 10 people Biden wins the Alaska primary PLUS confirmed on Sunday that an agreement has been reached.

Country delegations are scheduled to hold an emergency meeting on Sunday evening to finalize the talks, the Azerbaijani energy minister said, telling CNBC the meeting will be chaired by the Russian and Saudi energy ministers.

The deal falls just short of the initial proposal to cut 10 million barrels a day, with the United States, Brazil and Canada providing an additional 3.7 million barrels, Bloomberg reported. OPEC officials were still waiting to hear from other members of the 20-member group on Sunday afternoon. Mexico will only have to cut 100,000 barrels, depending on the outlet.

Prices have fallen 40% since March in response to a deadlock between Saudi Arabia and Russia over a potential emergency plan to deal with the effect of the pandemic on oil market supplies, which has triggered a price war between the two countries.

While the two sides reached an agreement last week, Saudi Arabia also came under pressure from President Trump to reach a compromise with Mexico.

As early as Thursday, Mexican Energy Minister Rocío Nahle would commit only to one-third of the 350,000 barrels a day that Saudi Arabia asked Mexico to reduce, the Wall Street Journal reported.



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