OPEC+ cuts oil production by 10%

OPEC+ cuts oil production by 10%


drilling oil

Rabat, Morocco (TMT)- The Organization of the Petroleum Exporting Countries (OPEC), spearheaded by Saudi Arabia agreed on a deal with Russia and other oil-producing nations to cut down global oil output by 10%, amid the current economic crisis triggered by the coronavirus world pandemic.

The decision was not an easy one to take with negotiations that lead to the deal-sealing having taken 9 days of marathon-talks before unfolding.

The 10% reduction represents a minimum reduction of 9.7 million barrels per day and “could see up to 20 million barrels of oil per day removed from a severely oversupplied oil market,” a statement from OPEC reads.

US President Donald Trump, who asked the group to lower its production, was caught happy following the decision.

“This will save hundreds of thousands of energy jobs in the United States. I would like to thank and congratulate President Putin of Russia and King Salman of Saudi Arabia,” Trump tweeted.

“These production adjustments are historic. They are largest in volume and the longest in duration, as they are planned to last for two years. We are witnessing today the triumph of international cooperation and multilateralism which are the core of OPEC values,” said OPEC Secretary General Mohammed Barkindo.

It is worth reminding that the current OPEC members are the following: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia, the United Arab Emirates, and Venezuela.

The de facto leader of the group is Saudi Arabia.

The Moroccan Times.