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Updated April 10th, 2020 at 15:06 IST

Deal starting with 10M barrel cut hinges on Mexico

A deal between OPEC and nations including Russia to boost oil prices involves a 10 million barrels per day cut until July, then an 8 million barrels per day cut through the end of the year, though the cartel said Friday its approval hinges on Mexico's agreement.

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A deal between OPEC and nations including Russia to boost oil prices involves a 10 million barrels per day cut until July, then an 8 million barrels per day cut through the end of the year, though the cartel said Friday its approval hinges on Mexico's agreement.

A marathon videoconference call between OPEC and other producers lasted until early Friday morning, when it apparently devolved into a Mexican standoff.

The cartel, Kuwait and Saudi Arabia say Mexico's refusal to agree blocked the proposed accord.

Mexico has yet to respond, though the deal comes as prices have been gutted by the coronavirus pandemic and the COVID-19 illness it causes.

Analysts warn even these proposed cuts may not be enough to offset the loss in demand.

OPEC said the deal also calls for a 6 million barrel per day cut for 16 months beginning in 2021.

 

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Published April 10th, 2020 at 15:06 IST

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