OPEC significantly cuts oil production

Global demand for oil has plummeted in the corona pandemic. To increase the price again, the producing countries want to drastically reduce their production. The agreement was initially difficult for them.

The way for a throttling of oil production by the oil cartel OPEC and its partners is free: At a special video session, the oil producing countries agreed on a cut by 9.7 million barrels (159 liters each) per day for May and June, like the governments several member states confirmed.

The now agreed quantity is 300,000 barrels a day below the original target decided on Friday. Mexico had been reluctant to cut its output by a total of 100,000 barrels within the two months - now it agreed to the temporary cut.

Ten percent of global oil production affected

The agreement affects about a tenth of global funding - experts expect other countries such as Canada and the United States to follow suit and also shut down their production.

The global economic slowdown due to the corona pandemic has caused oil demand to collapse. Russia and OPEC also failed to agree on funding cuts in early March . Saudi Arabia was so upset that it announced plans to expand its production and cut its price. Oil prices on the world markets then fell.

It is unclear whether the OPEC can now stabilize the rapidly falling oil price with the now negotiated agreement.