Global pact reached to stem oil price crash
DUBAI, United Arab Emirates — The OPEC oil cartel and other oil producers agreed Sunday to boost oil prices by cutting nearly 10 million barrels a day in production, or a tenth of global supply, according to energy officials from several nations who participated in the talks.
Mexico’s energy minister said on Twitter that the group of nations agreed to cut 9.7 million barrels a day to begin May 1. Energy officials from other countries shared similar information after the officials met by video conference Sunday.
Iran’s oil ministry also confirmed the cut for May and June.
It said the so-called OPEC+ countries agree to have Mexico reduce its output by 100,000 barrels only for those two months.
That had been a sticking point for the accord meant to boost global energy prices.
The agreement would be an unprecedented global pact to stabilize the market.
Iranian Oil Minister Bijan Zanganeh told state television that Kuwait, Saudi Arabia and the United Arab Emirates would cut an additional 2 million barrels of oil a day between them atop the OPEC+ deal to help rebalance the markets. The three countries did not immediately acknowledge the cut themselves.
Video aired by the Saudiowned satellite channel al-Arabiya showed the moment Saudi Energy Minister
Prince Abdulaziz bin Salman, a son of King Salman, assented to the deal.
Nigeria’s Petroleum Resources Ministry said in a statement that other cuts would stand, meaning an 8 million barrel per day cut from July through the end of the year and a 6 million barrel cut for 16 months beginning in 2021.
“This will enable the rebalancing of the oil markets and the expected rebound of prices by $15 per barrel in the short term,” the ministry said in a statement.