Saudi, Russia agree to record oil cut
The world's largest oil producers on Thursday (April 9) agreed to make historic cuts to production, slashing output by more than a fifth amid a worldwide lockdown that has hammered prices.
Fuel demand has been cut by around 30% with aircraft grounded, vehicle usage down and economic activity subdued.
Meeting by video conference, OPEC and its allies, known as OPEC+. agreed to slash output by 10 million barrels per day - about 10 percent of global supplies - and another 5 million from other nations.
But even with the record cuts, analysts say it may not be enough to offset the heavy build up in supply due to falling demand.
Talks were complicated by friction between OPEC leader Saudi Arabia and non-OPEC Russia.
But sources on both sides said the oil powerhouses had overcome differences amid the deepest oil market crisis in decades.
Now, attention turns toward a virtual Friday meeting among G20 energy ministers that other key oil producers - such as the U.S. and Canada - are scheduled to attend.
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