The US and Mexico have joined the agreement reached by OPEC with Russia on oil production. They have agreed to produce 10 percent less oil. In May and June, production is limited to 9.7 million barrels a day.
The oil price has collapsed as a result of the corona crisis, as lockdowns and closed borders have led to a sharp fall in oil demand. The price drop was exacerbated by the price war between Russia and OPEC leader Saudi Arabia. As a result of the production reduction, the countries hope to raise prices again.
Free market
On Thursday, OPEC and Russia already decided to cut oil production, but the United States and Mexico did not yet want to commit to participate.
President Trump came across the bridge earlier this weekend.
Mexico
The agreement was still delayed afterwards because Mexico continued to be a problem. Mexico now has to reduce production less than the rest: instead of 400,000 barrels, 100,000 barrels are removed. Therefore, the country now agreed to the deal.
Earlier this year, a barrel of oil cost $ 70 and just before the corona crisis, the oil price was still $ 50 a barrel. In the crisis that was $ 21, now there is a barrel at $ 32.
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