The COVID-19 pandemic forced the Organization of Petroleum Exporting Countries (OPEC) and its allies to reduce global oil production to 23 percent in an initial period of two months.
For May and June, the OPEC agreed to a cut of 10 million barrels per day. While by the end of 2020, the reduction will be 8 million.
From the beginning of 2021 until the end of April, production will be cut to 6 million barrels per day.
To ensure the stability of the energy market, the producing countries also agreed to maintain oil supplies at all levels.
OPEC countries and their partners took the cooperation agreement on Thursday to revive the energy market, which has been severely affected by the pandemic. It was feared that Saudi Arabia and Russia would resist the cut, but both countries joined the agreement.
Even though Mexico initially withdrew from the negotiation, and opposed the cut, the rest of the non-OPEC countries, such as Norway, Brazil, Canada and the U.S., confirmed their willingness to reduce their production.
Saudi Arabia Energy Minister Abdul Aziz Bin Salman chaired the virtual meeting. It was also attended by Argentina, Colombia, Ecuador, Egypt, Indonesia, Norway, Trinidad and Tobago, and the International Energy Forum as observer countries.