The Organization of the Petroleum Exporting Countries (OPEC) and other oil producers led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic.
At an emergency video conference, the group, known as OPEC+, has agreed to implement the plan from May. The plan has three phases and lasts for two years.
The output will be reduced by 9.7 million barrels per day (bpd) for May and June, around 10 percent of global supply.
From July to the end of 2020, the cut will decrease to 7.7 million bpd, and then will be followed by an adjustment of 5.8 million bpd for another 16 months till the end of April 2022.
The production cuts in Saudi Arabia and Russia are based on 11 million bpd, while other countries are based on the output in October 2018.
The participating countries failed to reach an agreement on out cuts at a video conference held on Thursday, with Mexico refusing its 400,000-bpd cut. And at the latest meeting, they agreed to cut Mexico's share to 100,000 bpd.
OPEC+ will reconvene a video conference in June to determine further actions needed for market balance, according to an OPEC statement.
Source:cctvplus
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