the Organization of Petroleum Exporting Countries (OPEC) announced on the evening of the 12th that OPEC and non-OPEC oil-producing countries reached an agreement to reduce oil production on the same day. The production cut will last for two months.
OPEC and non-OPEC oil-producing countries held a ministerial video conference on the 12th and reached an agreement. According to the agreement, the output reduction from May to June this year will be 9.7 million barrels per day, from July to the end of the year will be reduced to 7.7 million barrels per day, from January 2021 to April 2022 will be reduced to daily 5.8 million barrels.
OPEC Secretary-General Mohammed Barkindo issued a statement on social media that night, saying that the production reduction agreement is the largest, lasts the longest, and has historical significance. The statement said that the agreement is beneficial to oil-producing countries, consumers and the global economy, and is a victory for international cooperation and multilateralism.
On April 9, OPEC and non-OPEC oil-producing countries had reached a preliminary agreement, and planned to reduce the average daily output by 10 million barrels from May to June this year. Due to Mexico ’s opposition to the reduction in production quota allocated to it, a final agreement could not be reached that day. According to the agreement reached on the 12th, Mexico’s production cut is 100,000 barrels per day instead of the 400,000 barrels per day previously recommended.