Under the deal, Mexico was expected to cut production by 400,000 barrels per day but the country resisted during the overnight talks. But Mexico's President Andres Manuel Lopez Obrador said he had reached an agreement with his US counterpart Donald Trump to cut production by only 100,000 bpd. The new OPEC+ deal envisaged all members reducing output by 23%, with Saudi Arabia and Russia each cutting 2.5 million bpd and Iraq cutting over 1 million bpd in May and June. Riyadh and Moscow agreed that their cuts would both be calculated from an October 2018 baseline of 11 million bpd, even though Saudi supplies surged to 12.3 million bpd this April. Under the plans, OPEC+ would ease cuts to 8 million bpd from July to December and relax them further to 6 million bpd between January 2021 and April 2022, OPEC+ documents showed.

Source: The North Africa Journal April 11, 2020 05:03 UTC