Bloomberg by Javier Blas, Salma El Wardany, and Grant Smith 4/9/2020
• Moscow and Riyadh had agreed on deep production cuts
• Attention now on Friday’s meeting of G-20 oil ministers
An historic multilateral deal to lower global oil production and stabilize prices, led by record cuts from Saudi Arabia and Russia, is at risk of collapse after Mexico refused to sign up.
The impasse casts doubt on efforts to revive the market from a debilitating coronavirus-induced slump. The deal by the coalition of nations known as OPEC+, which dwarves s previous interventions and has been sponsored by U.S. President Donald Trump, would end the price war between Riyadh and Moscow that helped pushed oil down to the lowest in almost two decades.
Speaking at a press conference on Friday morning, Mexican President Andres Manuel Lopez Obrador said he had talked to Trump and had reached a deal with OPEC+, but it wasn’t immediately clear if his position had shifted.
Saudi Arabia made the whole deal dependent on Mexico’s participation, pinning an accord to remove more than 10% of global production from the market on an argument about a few hundreds of thousands of barrels. But Riyadh’s energy minister, Prince Abdulaziz bin Salman is determined the burden of cuts must be shared as widely as possible.
More:
https://www.bloomberg.com/news/articles/2020-04-09/opec-agrees-on-deep-oil-output-cuts-to-fight-market-slump
