Opec+ reaches oil cut deal ending price war

An emergency video conference between the Organisation of Petroleum Exporting Countries (Opec) and non-Opec ministerial partners, chaired by Saudi Arabia, ended yesterday (April 12) with a continued commitment of the participating producing countries to the agreement reached last week to cut oil production output, as the Covid-19 pandemic continues.

 

All participating countries agreed to adjust downwards their overall crude oil production by 9.7 mb/d, starting from May 1, for an initial period of two months that concludes on June 30. This is expected to end the oil price war.

 

Mexico, which had resisted joing the deal, finally came around following a weekend of urgent diplomacy. US President Donald Trump intervened, helping broker the final compromise 

to take part in the production cut plan, reports said.

 

“We have demonstrated that Opec+ is up and alive,” Saudi Energy Minister Prince Abdulaziz bin Salman told Bloomberg News in an interview minutes after the deal was done. “I’m more than happy with the deal.”

 

During their tenth meeting, producing countries "reaffirmed the continued commitment of the participating producing countries in the ‘Declaration of Cooperation’ to a stable market, the mutual interest of producing nations, the efficient, economic and secure supply to consumers, and a fair return on invested capital."

 

During the meeting, the participants emphasised the "important and responsible decision" to adjustment production at the 9th Opec and non-Opec Ministerial Meeting on April 9 and 10.

 

Source: www.tradearabia.com/news/OGN_366580.html

 

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