Oil cartel OPEC, Russia and other oil-producing countries agreed on Sunday evening to limit production by 9.7 million barrels per day for the months of May and June. That is about 10 percent of the amount that is pumped up daily worldwide.
Negotiators within the group, also known as OPEC +, confirmed the agreement. Among them the oil ministers of Kuwait and Saudi Arabia. Mexico has been a problem for a long time, but eventually agreed to the production restriction after, among other things, a compensation offer from the US.
It is intended to boost the oil price in these economic times, which are already difficult due to the corona crisis. Oil prices in international markets have plummeted as a result of an ongoing battle between Russia and Saudi Arabia.
Mexican Energy Minister Rocio Nahle thanked OPEC + colleagues for signing the deal. Her country, a relatively small producer, was supposed to hand in 400,000 barrels in the original plan but wouldn’t go above 100,000. Nahle received support in that endeavor from Iran, among others.
US President Donald Trump applauded the deal.
“This saves hundreds of thousands of jobs in the US energy sector,” he said.
Trump also thanked and congratulated his Russian colleague Vladimir Putin and Saudi King Salman. Moscow and Riyadh were also satisfied with this solution, which they believe will bring stability to the oil market.