Brent Oil Prices Fall Below $ 31 Per Barrel
On Sunday, April 12, OPEC + countries held an extraordinary video conference and formally agreed a new deal to reduce oil production by 9.7 million barrels per day. An alliance from 23 countries will reduce total oil production by two months. This is the largest coordinated reduction in the supply of raw materials to the market.
Over the next six months, from July 1, 2020 to December 31, 2020, the agreed reduction will be 7.7 million barrels per day. It will be followed by an adjustment to the production limit of 5.8 million barrels per day for 16 months.
The largest OPEC producer Saudi Arabia will reduce production to 8.5 million barrels per day, which is almost 30% lower than the April record level of 12 million barrels per day. Russia will reduce raw material production to 8.5 million barrels per day for the next two months.