OPEC+ Deal For Oil Market Stabilisation In Disarray As Mexico Refuses Big Production Cuts

Mexico suspended the agreement reached by all OPEC+ group members at Thursday's meeting to reduce oil production by about 10 million barrels per day, Kuwait's oil minister Khaled al-Fadhel said on Friday (10 April).

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, a group known as OPEC+, kicked off an extraordinary video conference on Thursday to discuss oil production cuts, reports Xinhua news agency.

"Kuwait held marathon talks in the past days and during the meeting to create a state of consensus between the member states in the hope of rebalancing the oil markets," said the Minister.

Mexican Energy Secretary Rocio Nahle, who also attended the teleconference, tweeted early Friday that Mexico is ready to reduce the national oil production by only 100,000 barrels per day in May and June.

"From 1.781 mbd (million barrels per day) of production that we reported in March 2020, we will decrease to 1.681 mbd," Nahle said, adding that Mexico agreed to stabilize the price of oil at the OPEC Secretariat meeting.

Also on Friday, Russia, the US and Saudi Arabia have agreed to coordinate actions on stabilizing oil markets and minimize the impact of oil price volatility on global economy,.

"Today, Russian President Vladimir Putin had a phone conversation with US President Donald Trump and Saudi Arabia King Salman bin Abdulaziz Al Saud," the state-run TASS News Agency quoted the Kremlin press service as saying in the statement.

The sides confirmed "determination to coordinate actions to stabilize the situation in the global oil trade and minimize the negative impact of volatile oil price quotations to the global economy", it said.

The previous OPEC+ agreement had expired on March 31.

This news has been published via Syndicate feed. Only the headline has been changed.