OPEC And Non OPEC Oil Producing Countries Reach Agreement On Oil Reduction

Xinhua news agency, Riyadh, April 12th, the organization of Petroleum Exporting Countries (OPEC) announced on the evening of 12, OPEC and non OPEC oil production agreement reached the same day, the average daily production will be reduced by 9 million 700 thousand barrels from May 1st, the first round of production reduction for two months.

OPEC and non OPEC oil producers held ministerial video conferences 12 days ago and reached an agreement. According to the agreement, the reduction in production from May to June will be 9 million 700 thousand barrels per day, and the reduction will be reduced to 7 million 700 thousand barrels per day from July to the end of the year. The reduction of production will be reduced to 5 million 800 thousand barrels per day from January 2021 to April 2022.

OPEC Secretary General Mohamed Barkindo issued a statement on social media that evening, saying that the production reduction agreement was the largest and last for a long time, which is of historic significance. The statement said that the agreement is conducive to oil producing countries, consumers and the global economy, and is a victory for international cooperation and multilateralism.

In April 9th, OPEC and non OPEC oil producers initially reached an agreement that they planned to cut output by 10 million barrels a day between May and June this year. Mexico failed to reach a final agreement on the same day because of its opposition to the allocation of production cuts. According to the agreement reached on 12, Mexico's production quota is 100 thousand barrels per day instead of 400 thousand barrels per day recommended previously.