The US Weighs In
The OPEC cartel and other oil producers agreed Sunday, April 12th to cut crude oil production by at least a tenth of global supply in a move to stabilize the market.
Russian President Vladimir Putin, U.S. President Donald Trump and Saudi Arabia's King Salman all support the deal, which would see global crude output cut by 9.7 million barrels a day, the Kremlin said Sunday.
OPEC confirmed in a release the cuts will begin May 1 and continue until June 30. After that, the countries will keep gradually decreasing curbs on production until April 2022. From July until December of this year, output cuts will continue at 7.7 million bpd, and 5.8 million bpd for the 16 months after that.
The OPEC+ countries agreed to have Mexico reduce its daily output by 100,000 barrels only for those two months, which had been a sticking point for the accord. The pact came after a long video conference between officials from 23 nations. The group will meet again in June to determine if further actions are needed.