Saudi, US and Russian leaders express ‘great satisfaction’ with new OPEC+ deal

Saudi, US and Russian leaders express ‘great satisfaction’ with new OPEC+ deal
US President Trump, Saudi King Salman and Russian President Putin. (AN combo image)
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Updated 13 April 2020

Saudi, US and Russian leaders express ‘great satisfaction’ with new OPEC+ deal

Saudi, US and Russian leaders express ‘great satisfaction’ with new OPEC+ deal
  • Under the agreement, OPEC+ oil producers to cut output by 9.7 million barrels
  • Global demand for crude is down by at least 20 percent, resulting in heavy loses to oil producers

RIYADH: Saudi Arabia's King Salman, US President Donald Trump and President Vladimir Putin welcome the outcome of the new OPEC-plus meeting during a joint phone call, the Saudi Press Agency (SPA) reported late on Sunday.

"The leaders stressed the need for the producing countries to continue to shoulder their responsibilities and commit to them in order to stabilize the oil markets and to support the global economy," SPA reported.

Saudi Crown Prince Mohammad bin Salman also had a telephone call with Trump and both welcomed the long-term historic agreement, SPA said.

Earlier on Sunday, the Organization of Petroleum Exporting Countries (OPEC) led by Saudi Arabia and allies led by Russia agreed to cut oil output by a record amount — representing around 10% of global supply — to support oil prices.

Oil prices have gone down drastically this year as most of the world economies ground to a halt amid the coronavirus (COVID-19) pandemic, lowering demand for oil.

Under the deal that was reached in a virtual meeting, the oil producers are to cut 9.7 million barrels of oil per day from May.

By reducing the glut in supply, it is hoped that oil prices in the world market would rise to a level where producers would not be at a losing end.