Russia, OPEC, and other oil-producing nations have announced on Sunday that they have finalized an unprecedented production cut. The cut consists of nearly 10 million barrels, which represents a tenth of the global supply. The measure aims to boost oil prices amid the coronavirus pandemic and a price war, according to officials.
This is the largest reduction in production from OPEC in over a decade, according to the US Energy Secretary. Oil prices have collapsed over the past weeks as COVID-19 has halted global travel and slowed down other sectors that consume a lot of energy such as the manufacturing industry. The pandemic has devastated the US’s oil industry. In Mexico, the cartel and other nations agreed to allow the country to cut to only 100,00 barrels. a month. Asian markets reopened this morning, and international benchmark Brent crude traded at just over $31 a barrel.
Read More: OPEC, oil nations agree to nearly 10M barrel cut amid virus
