OPEC and non OPEC oil producing countries reach agreement on production reduction

The organization of Petroleum Exporting Countries (OPEC) announced on the evening of the 12th that OPEC and non OPEC oil producing countries reached an oil production reduction agreement on the same day, with an average daily production reduction of 9.7 million barrels from May 1, the first round of production reduction lasting 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 production reduction from May to June this year will be 9.7 million barrels per day, 7.7 million barrels per day from July to the end of this year, and 5.8 million barrels per day from January 2021 to April 2022.

In a statement on social media that night, OPEC Secretary General Mohammed barjindo said that the production reduction agreement is the largest and longest lasting and has historical significance. The statement said the agreement is conducive to oil producing countries, consumers and the global economy, and is a victory for international cooperation and multilateralism.

On September 9, OPEC and non OPEC oil producing countries reached an initial agreement to reduce production by 10 million barrels per day from May to June this year. A final agreement could not be reached on the same day, as Mexico opposed the production cuts allocated to it. According to the agreement reached on the 12th, Mexico’s production reduction is 100000 barrels per day, rather than the previously proposed 400000 barrels per day.