U.S, Saudi Arabia, and Russia Agree to Oil Deal
Posted on 04/12/2020
OPEC+ agreed to a 9.7 million barrels per day cut that will start on May 1, 2020 and go through the end of June 2020. OPEC+ initially wanted to cut production by 10 million barrels per day, but Mexico opposed that amount.
Under the new OPEC+ agreement, Mexico will cut 100,000 barrels per day, instead of the 400,000 barrels per day that was the initial amount. Before the OPEC+ deal, on April 10, 2020, Mexican President Andres Manuel Lopez Obrador (AMLO) disclosed that U.S. President Trump “generously” offered for the U.S. to reduce output by an additional 250,000 barrels a day, according to The Wall Street Journal. “The United States will help Mexico along and they’ll reimburse us some time at a later date when they’re prepared to do so,” President Trump said at a press conference on April 10, 2020.
The Organization of the Petroleum Exporting Countries (OPEC) is an oil cartel.
What is OPEC+
OPEC+ is a broader group of 24 oil-producing countries, which as 14 OPEC members and 10 non-OPEC members. Russia is not a member of OPEC, while Saudi Arabia is OPEC’s largest oil producer. The U.S., Canada, and Norway are not part of OPEC+.
