Agreement On Production Cuts To Improve Falling Crude Oil Prices, Mexico Also Agrees

The energy ministers of the G-20 countries have also approached each other in the midst of efforts by major producing countries of the world to reduce production to improve falling oil prices, and this has resulted in the initial bottleneck after Mexico also agreed to cut production.

In this context, Mexico said that it has reached an agreement with the US on the production cut. This has increased the possibility of a compromise between all the oil producing countries to overcome the deadlock and cut production. Production may decrease by 10 million barrels per day. Only Mexico did not give its consent as agreed between various countries led by OPEC. Now after Mexico has agreed, in May and June, crude oil production can be reduced to 10 million barrels per day. 

The G20 talks were led by Saudi Arabia, the top exporter of crude oil. It is expected that this agreement will further broaden the agreement and will include non-OPEC countries such as Mexico, US and Canada. America will do this work to compensate Mexico Meanwhile, Mexico’s President Andriz Manuel López Obrador said, “Mexico will cut production by 100,000 barrels per day.” He said Trump had contacted him. Under the OPEC agreement, Mexico was to cut its production by 400,000 barrels per day.

But Mexico wanted to cut 100,000 barrels per day. Lopez said Trump had agreed That the US will cut its production by 250,000 barrels per day to compensate Mexico.According to the IOCL website, the price of one litre of petrol in Delhi, Kolkata, Mumbai and Chennai today is 69.59, 73.30, 76.31 and 72.28(INR) respectively. Talking about diesel, its prices in Delhi, Kolkata Mumbai and Chennai are 62.29, 65.62, 66.21 and 65.71 (INR) respectively.