Trump thanks Russia and Saudi Arabia for signing the oil agreement
US President Donald Trump thanked OPEC + countries, in particular, the Russian Federation and Saudi Arabia for reaching a historic agreement. At the same time, he claims that OPEC + plans to reduce oil production to 20 million barrels per day.
The American leader wrote about this on his twitter. According to him, the energy industry will be able to quickly restore its position after the pandemic.
What is known about the historic agreement signed by OPEC countries
On April 12, an emergency meeting of OPEC + countries was held. It took place in a videoconference mode.
As a result, the OPEC + countries reached a compromise with Mexico and agreed to reduce oil production by 9.7 million barrels per day.
Oil, starting a session with a sharp fluctuation in prices, on Monday, April 13, went up by 4-5%.
What preceded this
In early March, OPEC + countries were unable to agree either to extend the agreement or to change the parameters of oil production. Russia did not want to agree to an additional reduction in production, and Saudi Arabia insisted on it because the coronavirus pandemic led to a drop in oil demand.
When it became known that obligations would be lifted from all members of the alliance on April 1, Saudi Arabia announced an increase in production and lower oil prices. And it immediately brought down quotes.
Further, the parties began negotiations to conclude a new agreement. The last meeting of OPEC + countries (also via videoconference) was held on April 9. It culminated in principle agreements to reduce production by 10 million barrels per day.
True, the position of Mexico prevented the conclusion of the agreement, which agreed to reduce by only 100 thousand barrels, while she was offered to reduce by 400 thousand barrels per day. It was not possible to compromise with Mexico at the energy meeting of the G20 countries, held on April 10.
What is OPEC +? It is an international organization. It was created by countries that extract and export oil. The organization’s goal is to control oil production quotas.
OPEC + includes 13 OPEC countries (Algeria, Angola, Venezuela, Gabon, Iran, Iraq, Congo, Kuwait, Libya, the United Arab Emirates, Nigeria, Saudi Arabia, Equatorial Guinea), as well as Russia, Kazakhstan and Azerbaijan. Key manufacturers are Saudi Arabia and Russia.