Opec strikes deal with Russia to cut crude oil production
The move aims to support the price of fuel and energy as the US pumps more oil.
The countries of the Opec oil-producing cartel and ally Russia have agreed to cut crude production by an extra 500,000 barrels a day.
Russian energy minister Alexander Novak announced the decision on Friday.
The group’s goal is to to support the price of fuel and energy around the world.
— OPEC (@OPECSecretariat) December 6, 2019
But they also do not want to lose global market share to the United States, which keeps pumping more oil.
The decision came after long talks at the Opec headquarters in Vienna.
— Mikhail Ulyanov (@Amb_Ulyanov) December 6, 2019
The 7th OPEC and non-OPEC Ministerial meeting in Vienna on 6 December was successful. It decided on additional adjustment of 500 tb/d to the previously agreed levels. This would lead to total adjustments of 1.7 mb/d. (not counting some additional voluntary contributions).
Mikhail Ulyanov, the Russian ambassador, tweeted to say: “The 7th Opec and non-Opec ministerial meeting in Vienna on December 6 was successful.
“It decided on additional adjustment of 500 tb/d to the previously agreed levels.
“This would lead to total adjustments of 1.7 mb/d. (not counting some additional voluntary contributions).”