OPEC and Russia approve biggest oil cut ever in coronavirus pandemic

0
78


BAKU / DUBAI / LONDON – OPEC and its Russian-led allies agreed on Sunday to cut oil production by a record amount – accounting for about 10% of world supply – to support oil prices amid coronavirus pandemic, and sources said actual reductions could be as much as 20%.

Measures to slow the spread of the coronavirus have destroyed demand for fuel and depressed oil prices, straining the budgets of oil producers and hammering the US shale industry, which is more vulnerable to low prices due to its higher costs.

The group, known as OPEC +, said it had agreed to cut production by 9.7 million barrels per day (b / d) for May-June, after four days of marathon talks and following pressure from US President Donald Trump to stop the price drop.

In the largest decline in oil production ever, exceeding the reductions approved during the 2008 financial crisis four times, countries will continue to gradually reduce existing production restrictions for two years until April 2022.

“The big oil deal with OPEC + is over. This will save hundreds of thousands of energy jobs in the United States, “Trump wrote on Twitter, thanking Russian President Vladimir Putin and Saudi King Salman for advancing the deal.

“I just talked to them … a lot for everyone,” said Trump.

LEAVE A REPLY

Please enter your comment!
Please enter your name here