Producers of the OPEC+ group and their allies, including Russia, came to an agreement: the production of oil will be cut by more than 20 percent. OPEC+ decided so during the negotiations on April 9, as the members gathered on a video conference, BBC reports.
In order to support the world prices for oil, the Group agreed to cut the production by 10 million barrels per a day, which is 10 percent of the daily supplies. Other countries are expected to cut it by another five million barrels. The cuts will be gradually decreasing until April 2022.
"Oil prices slumped in March after OPEC+ failed to agree cuts. In the wake of the March meeting, Saudi Arabia and Russia moved to boost production in order to retain market share amid falling global demand. That, together with the collapse in demand for oil amid the coronavirus pandemic, help to push oil prices to 18-year lows by the end of March. Prices have recovered some ground since then. Last week, prices jumped 20% after US President Donald Trump said he expected Saudi Arabia and Russia to end their feud", reads the article.