Saudi, Russia agree record oil cut under U.S. pressure as demand crashes [View all]

[Eugene]

Source: Reuters

BUSINESS NEWS APRIL 8, 2020 / 8:12 PM / UPDATED 24 MINUTES AGO

Saudi, Russia agree record oil cut under U.S. pressure as demand crashes

Rania El Gamal, Olesya Astakhova, Ahmad Ghaddar
5 MIN READ

DUBAI/MOSCOW/LONDON (Reuters) - OPEC and its allies led by Russia agreed on Thursday to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered by the coronavirus crisis.

The cuts by OPEC and its allies, a group known as OPEC+, amount to 10 million barrels per day (bpd) or 10% of global supplies, with another 5 million bpd expected to come from other nations to help deal with the deepest oil crisis in decades.

Global fuel demand has plunged by around 30 million bpd, or 30% of global supplies, as steps to fight the virus have grounded planes, cut vehicle usage and curbed economic activity.

An unprecedented 15 million bpd cut still won’t remove enough crude to stop the world’s storage facilities quickly filling up. And far from signalling any readiness to offer support, U.S. President Donald Trump has threatened OPEC if it did not fix the oil market’s problem of oversupply.

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Read more: https://www.reuters.com/article/us-global-oil-opec/saudi-russia-agree-record-oil-cut-under-u-s-pressure-as-demand-crashes-idUSKCN21R00R