OPEC Says The Top Oil Producers Except Mexico Have Agreed To Cut Outputs

OPEC said that major oil producing countries, except Mexico, have agreed to cut production by 10 million barrels per day in May and June. The statement came after OPEC and other major oil producing countries held intensive talks to prevent a steep fall in prices.OPEC, an organization of oil producing countries, said after a video conference that the agreement to cut production by 8 million barrels per day from July to December will depend on Mexico’s stand.

These countries said that they hoped that the US and other producing countries would also join them to reduce the massive price drop caused by the coronavirus. US President, Donald Trump said last week that Russia and Saudi Arabia would be ready to step back from their respective positions and cut production. Now OPEC has stated that the final agreement rests on the signing of the Agreement by Mexico.

This has resulted in a ban on vehicular traffic and a drop in fuel demand. The oil producing countries have agreed to cut production to prevent the steep fall in crude oil prices due to lack of consumption. 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.