OPEC+ outlines oil cut deal, but Mexico holds up final agreement: Sources

An oil worker with Mexico's state owned oil company, PEMEX (Petroleos de Mexico), kicks a drilling rod as it is hoisted onto an oil platform in the Sen oil field. (File photo: Reuters)

OPEC, Russia and other allies outlined plans on Thursday to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered by the coronavirus crisis.

But the group, known as OPEC+, failed to secure a final agreement, which OPEC sources said would depend on Mexico joining in after it balked at the production cuts it was asked to make.

Discussions were due to resume on Friday when G20 energy ministers hold additional talks.

OPEC and allied oil producers, a group known as OPEC+, agreed on Thursday to cut output by 10 million barrels per day (bpd) in May and June to help prop up prices battered the coronavirus crisis, the group said in a statement.

It said the cuts would be eased between July and December to 8 million bpd and the reductions would then be relaxed further to 6 million barrels between January 2021 to April 2022.

The coronavirus pandemic has caused an unprecedented drop in the use of oil worldwide, from driving cars to air flights and industrial usage. Meetings between the OPEC+ group will occur today, while the G20 energy minister will meet Friday to discuss the global oil market.

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Last Update: Wednesday, 20 May 2020 KSA 14:06 - GMT 11:06
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