Earlier, it was announced that, after eleven hours of OPEC+ group talks, a declaration of cooperation in cutting global oil output had been adopted by all member states, apart from Mexico. US President Donald Trump said on Friday that the United States would cut oil production to make up the difference for Mexico.
A new OPEC+ agreement to reduce oil production will unite 23 countries and will last for two years – until May 2022 – with oil output cuts at 10 million barrels per day in the first two months, Russian Energy Minister Alexander Novak said in a statement, adding that G20 talks held on Friday were effective.
Novak also stated that in the second half of 2020, production cuts will be eased to 8 million barrels per day.
The G20 energy minister’s meeting on the stabilization of the global energy market took place on Friday and followed the Thursday OPEC+ video conference dedicated to the possibility of striking a new oil output cuts deal.
OPEC+ talks held on Thursday finished with the adoption of a new declaration on cooperation envisaging a three-stage oil production reduction, which was accepted by all states except Mexico.
Earlier, US President Donald Trump said that the United States would cut oil production to make up difference for Mexico and the country would reimburse later, stating that “helping Mexico to meet OPEC demands will not cost the US anything”.
The OPEC+ deal, as well as that in effect before 1 April, involves 10 OPEC countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iraq, Kuwait, Nigeria, Saudi Arabia, and the United Arab Emirates. Three more OPEC members — Iran, Libya and Venezuela — are still exempted from production cuts due to sanctions and diplomatic challenges.
There are also ten so-called non-OPEC observer states in the deal — Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan.
Sourse: sputniknews.com
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