Oil Price Rises after OPEC+ Agree to Historic Output Cut of 9.7 Million BPD
Oil Price Rises after OPEC+ Agree to Historic Output Cut of 9.7 Million BPD
Oil price rose more than 2% following the world’s largest oil producer countries have agreed to historic cut production amid the coronavirus crisis and a Saudi-Russia price war.
As of 11:34 local time in Thailand, the price of WTI was at $23.93/bbl, rose $1.17/bbl or 5.14%. Meanwhile, Brent was traded at $32.86/bbl, climbed $1.38/bbl or 4.38%.
After 4 day-long discussion, finally the OPEC and its allies came to a compromise deal on Sunday to reduce the output as much as 9.7 million barrels per day, starting from May. At the beginning of the video conference on Thursday, the meeting was expected to cut the production by 10 million barrels per day, but Mexico opposed with that amount
The cut will begin on May 1 and will extend until the end of June, then from July till the end of 2020 the cuts will lessen to 7.7 million barrels per day, and 5.8 million barrels per day from Jan. 2021 through April 2022. OPEC+ schedules to meet again on June 10 to determine if further action is needed.