Business Market 13 Apr 2020 OPEC, Russia approve ...

OPEC, Russia approve 'historic' oil cuts amid coronavirus

AFP
Published Apr 13, 2020, 8:53 am IST
Updated Apr 13, 2020, 11:32 am IST
In the compromise reached they agreed to a cut of 9.7 million barrels per day from May
Top oil producers agree 'historic' cuts due to coronavirus crisis. (AFP Photo)
 Top oil producers agree 'historic' cuts due to coronavirus crisis. (AFP Photo)

VIENNA: Top oil-producing countries agreed on "historic" output cuts to prop up prices hammered by the coronavirus crisis and a Russia-Saudi price war, sending crude prices soaring on Monday.

The US benchmark WTI climbed 7.7 percent to $24.52 a barrel in early Asian trade while Brent was up 5.0 percent at $33.08.

 

OPEC producers dominated by Saudi Arabia and allies led by Russia thrashed out a compromise deal via videoconference Sunday after Mexico had balked at an earlier agreement struck on Friday.

In the compromise reached Sunday they agreed to a cut of 9.7 million barrels per day from May, according to Mexican Energy Minister Rocio Nahle, down slightly from 10 million barrels a day envisioned earlier.

OPEC Secretary General Mohammad Barkindo called the cuts "historic".

"They are largest in volume and the longest in duration, as they are planned to last for two years," he said.

 

The agreement between the Vienna-based Organization of the Petroleum Exporting Countries and partners foresees deep output cuts in May and June followed by a gradual reduction in cuts until April 2022.

Barkindo added that the deal "paved the way for a global alliance with the participation of the G20".

Saudi Energy Minister Prince Abdulaziz bin Salman, who chaired the meeting together with his Russian and Algerian counterparts, also confirmed that the discussions "ended with consensus".

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Location: Austria, Wien, Wien




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