US President Donald Trump announced on Monday that the largest oil exporter in the world is studying the possibility of reducing production by 20 million barrels per day, according to an agreement designed to boost prices.
Trump, who is credited with brokering the deal, said the agreement was greater than expected and would help the energy sector recover from the effects of the Covid-19 epidemic, adding, “OPEC and its partners are looking to cut 20 million barrels per day, not 10 million, as was reported”.
For his part, Saudi Energy Minister Prince Abdulaziz bin Salman said that details of the contributions of non-OPEC + countries to the international oil reduction agreement will be announced next Wednesday.
On Sunday, OPEC + countries announced their agreement to reduce oil production by 9.7 million barrels per day.
The Saudi Minister of Energy noted that even if production had been cut on March 6 in Vienna, we would be forced to reduce again, noting that the agreement includes an addition to strategic stocks of 3 million barrels per day in May and June.
The Saudi Crown Prince, Mohammed bin Salman bin Abdulaziz, made a phone call early Monday morning to US President Donald Trump, “during which they reviewed the results of the (OPEC Plus) group meeting”.
The Saudi News Agency, SPA, reported that the Saudi Crown Prince and the US President expressed their welcome to reaching a long-term historic agreement to reduce production in line with the size of the effects of the Coronavirus pandemic, and in accordance with the aspirations of the markets, and in a manner, that enhances the growth of the global economy.
On Sunday, OPEC + countries reached an agreement to reduce production starting from the first of next May at an average of 9.7 million barrels per day for two months.
President Trump wrote on Twitter, saying: “The grand agreement with OPEC + has been accomplished.
This will save hundreds of thousands of jobs in the US energy sector”.
The OPEC +, which includes members of the organization, and countries from outside it, most notably Russia, reached an agreement unanimously to reduce oil production, described as the largest reduction of its kind in the history of global crude production.
The OPEC + coalition said in a draft statement that the total global oil production cuts that will take place from May 1, 2020 will exceed 20 million barrels.