OPEC+, the group composed of OPEC, Russia and other oil-producing nations, has successfully concluded a deal to cut oil output by nearly 10 million barrels per day (bpd), which amounts to 10 percent of global supply, after a compromise with Mexico.
Mexico had been holding out on cutting its output by 400,000 bpd as per the proposed OPEC+ deal required and countered with an output cut of 100,000 bpd.
Measures to curb the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the US shale industry, which is more vulnerable to low prices due to its higher costs.
Global oil demand is estimated to have fallen by a third as more than 3 billion people are locked down in their homes due to the coronavirus outbreak.
