OPEC agrees to 10 percent reduction cut

Oil-producing countries agreed to cut production by nearly 10 million barrels a day, or a tenth of the global supply. The move is geared to boost oil prices, which have slumped in recent weeks due to a price war and COVID-19 pandemic.

By

World News

April 14, 2020 - 9:04 AM

DUBAI, United Arab Emirates (AP) — OPEC, Russia and other oil-producing nations on Sunday finalized an unprecedented production cut of nearly 10 million barrels, or a tenth of global supply, in hopes of boosting crashing prices amid the coronavirus pandemic and a price war, officials said.

“This could be the largest reduction in production from OPEC for perhaps a decade, maybe longer,” said U.S. Energy Secretary Dan Brouillette, who credited President Donald Trump’s personal involvement in getting dueling parties to the table and helping to end a price war between Saudi Arabia and Russia.

Oil prices have collapsed as the COVID-19 pandemic has largely halted global travel and slowed down other energy-chugging sectors such as manufacturing. It has devastated the oil industry in the U.S., which now pumps more crude than any other country.

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