The Organisation of Petroleum Exporting Countries OPEC and its allies, led by Russia, finally agreed to a record cut in oil output to push up prices amid the coronavirus pandemic.
The spread of the deadly COVID-19 pandemic across the globe dwarfed demand for crude, dwindled oil price to a record low at $20 per barrel weeks ago and hampered producing countries’ national budget.
But OPEC allies, otherwise called OPEC+ said on Sunday it had agreed to reduce output by 9.7 million barrels per day bpd for May and June, after four days of talks and following pressure from U.S. President Donald Trump to arrest the price decline.
In an unprecedented deal with fellow oil nations, including the United States, the agreement would see a 20% reduction in global oil supply amounting to more than 20 million bpd, according to OPEC+ sources.
The biggest oil cut ever is more than four times deeper than the previous record cut in 2008. Producers will slowly relax curbs after June, although reductions in production will stay in place until April 2022.
Following the success of the deal, Trump, in a statement from the White House, welcomed the commitment by Saudi Arabia and Russia “to return oil production to levels consistent with global energy and financial market stability.”
Earlier on Twitter, the US President tweeted: “The big Oil Deal with OPEC+ is done. This will save hundreds of thousands of energy jobs in the United States.”
While appreciating the Russian President Vladimir Putin and Saudi King Salman for pushing the deal through, he added: “I just spoke to them… Great deal for all,”
YOU MAY ALSO LIKE
As A Nation, We Cannot Afford To Fail This New Year, Says Jonathan
Share Former President Goodluck Jonathan says Nigeria cannot afford to fail in 2021, Channels Television reports. In his New Year message...
Take Care Of Nigerian Youths Else They’ll Rise Against Your Govt – Mbaka Warns Buhari
Share Ejike Mbaka, a Catholic priest and spiritual director of Adoration Ministry, Enugu, Nigeria (AMEN), has warned President Muhammadu Buhari to...
Resign Honourably, Gov Tambuwal Tells Service Chiefs Over Insecurity
Share Aminu Tambuwal, Sokoto State Governor, has asked service chiefs to honourably resign from their office due to the worsening security...
There’re Curses For People Who Criticise Men Of God, Says Pastor Chris Oyakhilome
Share Pastor Chris Oyakhilome, founder and President of LoveWorld Incorporated, commonly known as Christ Embassy, says there are curses for those...
Meet Your Targets Or Get Sanctioned – Buhari Warns Revenue Generating Agencies
Share President Muhammadu Buhari has issued a stern warning to revenue generating agencies in the country to either meet their targets...
BREAKING: President Buhari To Make New Year Nationwide Broadcast On Friday
Share President Muhammadu Buhari will make a New Year broadcast to the nation tomorrow Friday, January 1, 2021 at 7am. Garba...