OPEC and its allies sign a record deal to cut oil output
The big oil deal is done. Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia and Mexico, have agreed to cut oil production by 9.7 million barrels a day in May and June. Producers will slowly relax curbs after June, but reductions in production will stay in place until April 2022. Kazakhstan has supported this decision on reduction in the oil production.
“Kazakh Minister of Energy Nurlan Nogayev said during the videoconference, that Kazakhstan, as before, remains committed to a constructive dialogue, and, given the current challenging situation in the world market, is ready to participate in the collective cut of oil production,” reported the Kazakh Ministry of Energy press office.
The OPEC+ talks via video conference continued for 11 hours, followed by the G20 energy ministers’ online meeting with the participation of Kazakhstan.
Saudi Arabia was again the main initiator of the deal between the crude producers. The country for a long time didn’t lose its intention and tried to persuade Mexico to cut oil output. Eventually, Mexico promised to cut oil production by 100,000 barrels a day instead of suggested 400,000. The United States, along with Canada and Brazil, have taken over Mexico’s share and will reduce production by a total of 3.7 million barrels to compensate. However, because of Mexico, the total volume of the OPEC+ deal has amounted to 9.7 million barrels output cut instead of planned 10 million.
Russian President Vladimir Putin, the U.S. President Donald Trump and Saudi King Salman bin Abdulaziz Al Saud have already expressed their approval of the deal. The heads of the world’s three leading oil-producing states intend to continue negotiations on the implementation of the reached agreements.