The organization of the oil-producing countries (Opec +) has reached an agreement on cutting oil production which should curb the fall in the price of crude oil caused by the coronavirus emergency and will be 9.7 million barrels per day. Mexico, initially hesitant to the agreement, will reduce its production not by 400 thousand but by 100,000 barrels per day while the United States, Brazil and Canada will contribute an overall cut of almost 4 million barrels.
The agreement with OPEC for US President Donald Trump will save hundreds of thousands of jobs in the United States. – he writes on a tweet and adds – I would like to thank and congratulate Russian President Putin and King Salman of Saudi Arabia. I just spoke to them from the oval office. Great deal for everyone !.
The agreement, reached in a one-hour Sunday video conference after a week of tight negotiations and four days of video conferences, will start on May 1 and will last for the next two months, then will gradually thin out. It remains to be seen how the markets will react to the deal and whether the price drop will stop. Meanwhile, WTI oil flies with prices rising by 9% reaching almost $ 25 a barrel.
