LONDON (AFP) - Major oil producers except Mexico agreed to cut output in May and June by 10 million barrels per day, OPEC said yesterday, after marathon talks to counter a collapse in prices.
The video conference led by the Organisation of the Petroleum Exporting Countries has been seen as the best chance of providing support to prices, which have been wallowing near two-decade lows due to the coronavirus pandemic and a price war between key players Saudi Arabia and Russia.
The agreement, which also reduces production by eight million bpd from July to December, depends on Mexico’s consent for it to take effect, the oil cartel said after the meeting.
The virtual meeting of OPEC countries, dominated by Riyadh, and their OPEC+ allies including Russia, as well as other key non-members, began just after 1440 GMT on Thursday.
Talks dragged on into the small hours of yesterday. Bloomberg News reported that the main sticking point was the refusal of Mexico to sign up to its share of cuts under the deal, which would have been 400,000
barrels per day.
Mexican Energy Minister Rocio Nahle Garcia tweeted that her country had suggested a cut of 100,000 barrels.
Another virtual meeting is scheduled for June 10 “to determine further actions, as needed to balance the market”, OPEC said.
The current agreement also foresees a six mbpd cut from January 2021 through April 2022. An extension to the cooperation deal will be reviewed in December next year, OPEC said.