Oil prices soar after US, Saudi Arabia, Russia agree record output cut - The Daily News

Oil prices soar after US, Saudi Arabia, Russia agree record output cut


Top oil-producing countries agreed on historic output cuts to prop up prices hammered by the coronavirus.

The US benchmark WTI climbed 7.7% to $24.52 a barrel in early Asian trade while Brent was up 5.0%  at $33.08.

OPEC producers dominated by Saudi Arabia and allies led by Russia thrashed out a compromise deal via videoconference.

Sunday after Mexico had balked at an earlier agreement struck on Friday.

In the compromise reached Sunday they agreed to a cut of 9.7 million barrels per day from May.

According to Mexican Energy Minister Rocio Nahle, down slightly from 10 million barrels a day envisioned earlier.

OPEC Secretary General Mohammad Barkindo called the cuts “historic”.

They are largest in volume in the duration.

The agreement between the Vienna-based Organisation of the Petroleum Exporting Countries and partners foresees deep output cuts in May and June followed by a gradual reduction in cuts until April 2022.

Barkindo added that the deal “paved the way for a global alliance with the participation of the G20”.

Saudi Energy Minister Prince Abdulaziz bin Salman, who chaired the meeting together with his Russian and Algerian counterparts.

‘Great deal for all’

US President Donald Trump welcomed a “great deal for all”, saying on Twitter it would “save hundreds of thousands of energy jobs in the United States”.He added he “would like to thank and congratulate” Russian President Vladimir Putin and Saudi Crown Prince.

 


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