BREAKING: OPEC+, US, Canada, Mexico Reach Deal To Cut 13.4 Million BPD

A historic deal to cut global crude oil output has been reached between OPEC, Russia and a group of 20 countries including the US, Canada, Brazil, and Mexico.

This consensus was concluded after Nigeria joined its other OPEC+ counterparts to bring into effect the agreement to cut 9.7 Million Barrels of supply following the alignment of Mexico.

In line with the cut OPEC+ has agreed to cut 9.7 million barrels of Crude while the US, Brazil, Canada will cut an additional 3.7 million barrels per day of Crude totalling 13.4mbpd.

This will enable the rebalancing of the oil markets and the expected rebound of prices by $15 per barrel in the short term.

This also promises an appropriate balancing of Nigeria’s 2020 budget that has been rebased at $30 per barrel.

As agreed, Nigeria will join OPEC+ to cut supply by 9.7 Million Barrels per day between May and June 2020, Eight (8) Million Barrels per day between July and December 2020 and Six (6) Million barrels per day from January 2021 to April 2022, respectively.

Based on this cut Nigeria will now be producing 1.412 Million Barrels per day, 1.495 Million Barrels per day and 1.579 Million Barrels per day respectively for the corresponding periods in the agreement.

This is in addition to condensate production of between 360-460thousand barrel per day which are exempted from the cut