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OPEC+ Reportedly Agreed To Cut Oil Production By 10 Million Barrels Per Day After Mexico Joins Deal

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OPEC+ Reportedly Agreed To Cut Oil Production By 10 Million Barrels Per Day After Mexico Joins Deal

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On April 10, OPEC + (Organization of the Petroleum Exporting Countries and non-OPEC oil producers) reportedly reached an output cuts deal after Mexico agreed to reduce its production by 100,000 barrels a day.

The deal was reportedly reached after Mexican President Andres Manuel Lopez Obrador spoke with US President Donald Trump.

Initially, it was proposed to Mexico to cut crude production by 350,000 barrels per day. However, the country rejected the proposal during the April 9 OPEC+ meeting thus undermining the possible deal and causing a new spike of turbulence on the market.

Now, it seems that the US will pay own price for this. According to April 10 reports, Mexico cut crude production by 100,000 barrels per day, while the United States will make an additional cut of 250,000 barrels per day for Mexico.

However, teh OPEC is yet to confirm the announcement.

On April 9, Russia, Saudi Arabia and allied producers came to terms to cut a combined 10 million barrels per day in production during a virtual meeting. If the reports about the Mexico-US deal are true, the OPEC+ deal could be finalized immidiately. This will help to stabilize the oil market, which was undermined by the recent large-scale Saudi offensive and the kingdom’s attempts to defeat other oil producers.

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