International agreement to curb the fall in oil prices

Entente internationale pour freiner la chute des prix du pétrole

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President Andres Manuel Lopez Obrador said Friday that it had reached an agreement with the american president Donald Trump for the United States to compensate them for what Mexico does, may include in its cuts.

The Organization of the petroleum exporting countries (OPEC) and other oil producers agreed Sunday to a price increase through a reduction of the daily production of nearly 10 million barrels, or approximately 10 % of world production, according to leaders from the energy of many nations who participated in the discussions.

The ministry of Energy of Mexico has noted on Twitter that the grouping of nations had accepted a decline in output of 9.7 million barrels per day from the 1st of may. Energy managers from other countries have shared similar information, after having participated in a videoconference on Sunday.

The Oil ministry of Iran has also confirmed the decrease in production of 9.7 million in may and June. He added that the countries of what is called the OPEC + have also agreed that Mexico reduce its production only 100 000 barrels for these two months. It was an obstacle in the negotiations for an agreement designed to lead to an increase in the world price of energy.

This is a precedent-setting agreement for the industry, in the aim of stabilizing its market.

During this time, iranian minister of Oil Bijan Zangeneh said on the State channel that Kuwait, Saudi Arabia and the united arab Emirates and the united states went to reduce their production of two million barrels extra per day compared to the agreement of the OPEC +, in order to rebalance these markets. The three countries have not immediately confirmed this information, but Mr. Zangeneh participated in the videoconference.

A sequence reported by the chain in the saudi Al-Arabiya shows the moment when the saudi minister for Affairs energy, the prince Abdulaziz bin Salman, has accepted the agreement.

“I’m going with the consensus and therefore, I accept “, said the prince, escaping a laugh while he is applauded by the other participants in the videoconference.

The nigerian ministry of petroleum Resources said in a press release that the cuts were going to be eight million barrels per day from July to the end of the year and six million barrels of oil per day for 16 months starting in 2021.

“This will rebalance the oil market and we expect to see prices reach the $ 15 per barrel in the short term,” said the ministry in a press release.

Mexico had initially blocked the agreement, but president Andres Manuel Lopez Obrador said Friday that it had reached an agreement with the american president Donald Trump for the United States to compensate them for what Mexico does, may include in its cuts.

“The United States will help Mexico and they will eventually pay us back when they are ready to do so,” said Donald Trump during a press conference at the White House on Friday.

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