"LONDON — OPEC and its allies locked in a historic oil supply accord Sunday after Saudi Arabia, under pressure from the US, agreed to give Mexico a looser production quota, ending a four-day stalemate that threatened to escalate a price war in the midst of the coronavirus crisis.
The deal would see the 23-country OPEC+ alliance rein in 9.7 million b/d of crude oil production for May and June — down from the 10 million b/d originally envisaged, as Mexico was allowed out from 300,000 b/d of its proposed cut commitment. Mexico will instead cut 100,000 b/d, and then reconsider its continued participation in the pact, according to sources involved in the talks.
Saudi Arabia, OPEC's largest producer and de facto leader, and its Gulf allies the UAE and Kuwait will voluntarily overcomply with their quotas, adding another potential 2 million b/d to the deal, the sources said."
Herman Wang reports for S&P Global Platts April 12, 2020.
SEE ALSO:
"Oil, Equities Slip As Opec+ Cut Fails To Lift Confidence" (Reuters)
"Ambiguity Clouds Hard-Fought Opec-Plus Deal" (Energy Intelligence)
"Analysis: How Robust Is the Opec-Plus Deal?" (Energy Intelligence
"Oil Price War Ends With Historic OPEC+ Deal to Slash Output" (Bloomberg)
"OPEC+ Reaches Deal To Cut Oil Production By 9.7 Million Barrels Per Day" (CNN)
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