OPEC+ agrees to largest ever oil output cut of 9.7 million bpd
- 4 years ago
OPEC+, 5∼6월 하루 970만 배럴 원유감산 합의
OPEC and its oil producing allies,... known as OPEC-plus... have finalized a historic agreement to cut oil production by almost ten million barrels a day.
Sunday's agreement was reached after days of discussions between the world's largest energy producers amid plummeting demand.
Lee Seung-jae reports.
The second emergency meeting of the OPEC-plus group in four days on Sunday came as oil-producing nations scrambled to reach an agreement in order to prop up falling prices,... as the COVID-19 pandemic continues to hammer demand.
The meeting resulted in a historic agreement to cut oil production by 9-point-7 million barrels per day.
The agreement also ends a price war between Saudi Arabia and Russia,... which broke out in March,... leading to further pressured oil prices,... as both nations sought to gain market share.
The cut will begin on May 1st and will extend through the end of June.
While the agreement is implemented on all countries within the group,... OPEC-plus is hoping nations that aren't in the group,... including the U.S., Canada and Norway will also cut back in an effort to shore up prices.
Last Thursday, OPEC-plus initially proposed cutting production by 10 million barrels per day,... 10-percent of the global oil supply,... but was met with opposition from Mexico,... holding up any final deal.
However, under the new agreement,... Mexico will cut 100-thousand barrels per day,... instead of the initial request of 400-thousand barrels.
Despite the historic cut,... some experts fear it's not large enough to hold off the drop-off in demand,... hinting that a further cut is needed.
Lee Seung-jae, Arirang News.
OPEC and its oil producing allies,... known as OPEC-plus... have finalized a historic agreement to cut oil production by almost ten million barrels a day.
Sunday's agreement was reached after days of discussions between the world's largest energy producers amid plummeting demand.
Lee Seung-jae reports.
The second emergency meeting of the OPEC-plus group in four days on Sunday came as oil-producing nations scrambled to reach an agreement in order to prop up falling prices,... as the COVID-19 pandemic continues to hammer demand.
The meeting resulted in a historic agreement to cut oil production by 9-point-7 million barrels per day.
The agreement also ends a price war between Saudi Arabia and Russia,... which broke out in March,... leading to further pressured oil prices,... as both nations sought to gain market share.
The cut will begin on May 1st and will extend through the end of June.
While the agreement is implemented on all countries within the group,... OPEC-plus is hoping nations that aren't in the group,... including the U.S., Canada and Norway will also cut back in an effort to shore up prices.
Last Thursday, OPEC-plus initially proposed cutting production by 10 million barrels per day,... 10-percent of the global oil supply,... but was met with opposition from Mexico,... holding up any final deal.
However, under the new agreement,... Mexico will cut 100-thousand barrels per day,... instead of the initial request of 400-thousand barrels.
Despite the historic cut,... some experts fear it's not large enough to hold off the drop-off in demand,... hinting that a further cut is needed.
Lee Seung-jae, Arirang News.