Baghdad, The countries of the “OPEC +” group
reached an agreement described it as “historic”, and they agreed to
reduce oil production by 9.7 million barrels per day, in the largest reduction
Kuwaiti Oil Minister Khaled Al-Fadil said through his official account on Twitter this evening, Sunday, after a new meeting of the oil-exporting countries: We now announce the completion of the historic agreement to reduce production by approximately 10 million barrels of oil per day from OPEC + members starting from May 1, 2020.
Meanwhile, informed sources said that the countries participating in the talks, members of the “OPEC”, Russia and other oil exporting countries, have overcome the dispute with Mexico and approved the largest reduction in oil production amounting to about 10% of the global supply.
The sources pointed out that the group “OPEC +” agreed to reduce production by 9.7 million barrels per day in May and June, indicating that Mexico will reduce its production by 100 thousand barrels and not 400 thousand, as stipulated in the previous version of the deal.
Oil prices are witnessing a continuous decline in recent weeks, against the backdrop of the significant increase in supply against demand, which has deepened due to the outbreak of the new type of Coronavirus, especially after the failure to reach a new agreement on reducing oil production within the framework of the “OPEC +” group, which occurred, according to informed sources, due to a dispute between Russia and Saudi Arabia over the issue, amid reports indicating that the United States is seeking to reduce its losses due to this situation through an oil alliance with the Kingdom.
The “OPEC +” group, which includes Russia and other allies, announced last Thursday plans to cut production by more than a fifth in order to support the faltering prices due to the Coronavirus crisis.
At the time, Mexico rejected the production cuts requested from it, which hindered the signing of the final agreement.
Source: National Iraqi News Agency