These prove to be a colossal damage to the world economy and have resulted in the soaring of prices of oil and crude.
OPEC Secretary General Mohammad Barkindo stated that the cuts are the largest in volume and also the longest in duration as they are planned to last at least for two years. The producers of OPEC which is dominated by Saudi Arabia and allies guided by the Russians reached out a compromised deal through video conference after Mexico had balked at an agreement which was discussed earlier. He further stated that the deal paved the way for a global alliance with the participation of the G20.
The US benchmark WTI escalated 7.7 percentage to $24.52 a barrel in early Asian trade while Brent was up 5 percentage at $33.08 a barrel.
In the compromise reached on Sunday the investors negotiated to a cut of 9.7 million barrels per day from the month of May according to Rocio Nahle, the Mexican Energy Minister.
Prince Abdulaziz bin Salman , Saudi Energy Minister, who presided the meeting together with his Russian and Algerian counterparts, confirmed that the discussions ended with consensus.
– Christo Freddy, NMTV News