OPEC agrees to cut production
After a meeting held last Sunday, member countries agreed to drop to 9.7 million barrels a day
The Organization of the Petroleum Producing Countries (OPEC) reached an agreement to reduce 9.7 million barrels of crude oil daily from May 1st.
On April 9, the OPEC countries, with the exception of Mexico, agreed in an extraordinary meeting on a plan to cut oil production in three stages with reference to the levels of October 2018.
The initial agreement included a cut of 10 million barrels a day in the first stage, between May and June. During the second stage, from July to December, the reduction would be 8 million barrels per day and 6 million barrels per day during the third stage, from January 2021 to April 2022.
OPEC warned that the agreement is conditional on Mexico’s consent. Mexican President Andrés Manuel López Obrador announced on Friday that his country will reduce its oil production by 100,000 barrels per day, that is, 5.5%, and not 23% as requested by the OPEC countries, after an agreement with his American counterpart, Donald Trump .
For his part, Trump reported that the United States offered help to Mexico to cut its oil production in line with what was agreed by the countries that make up OPEC.
On March 6, OPEC and ten independent producers (Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan and South Sudan) ended the agreement on oil cuts beyond April 1 to Failing to agree on an extension of the initiative that had been in force since the beginning of 2017.
While Russia and other independent producers advocated keeping the previously agreed cuts unchanged, Saudi Arabia demanded a more drastic reduction.
K. Tovar
Source: Infobae
