Global oil prices on Friday remained depressed, despite the Organization of the Petroleum Exporting Countries-plus (Opec+), including Russia, agreeing to slash production by 10 million barrels per day (mbpd) under US pressure.
With this, the organization along with large producers ended its high-stakes game of flooding the global markets amid the covid-19 pandemic, which has taken a major toll on demand. The agreement said: “Adjust downwards their overall crude oil production by 10.0 mb/d, starting on 1 May 2020, for an initial period of two months that concludes on 30 June 2020.”
Any production cut assumes significance because the daily global demand of around 101 mbpd is expected to come down by 10 mbpd in March-April. However, this could not cheer the global oil markets.
