OPEC and Russia reached tentative agreement to cut oil production

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil-producing countries on Thursday, 9 April 2020 had reached a tentative agreement to the steepest production output cut in history. 

The patch would collectively curb output by 10 million barrels per day or 10% of the global supply in the month of May and June 2020 and would adjust to 8 million barrels per day in the subsequent period of 6 months.

Both Saudi Arabia and Russia would cut 2.5 million barrels per day each using the baseline of 11 barrels per day. 

The agreement would be valid until 30 April 2022 but would be reviewed during December 2021. However, it subjected entirely to the consent of Mexico, who have not agreed to the cooperation discussed at this meeting. Mexico is requested to reduce its production output by 400,000 barrels per day.