The New York Times discusses how OPEC and Russia have agreed to cut oil production. The reductions for May and June were smaller than some investors and analysts had expected, and oil prices gave up earlier gains.
The Organization of the Petroleum Exporting Countries, Russia and other countries reached a tentative agreement on Thursday to temporarily cut production.
OPEC and the other oil-producing countries agreed to cut 10 million barrels a day — about 23 percent of their production levels — in May and June, they said in a statement on Friday. Possible further trims could come from a meeting of the Group of 20 nations on Friday.
Negotiations hit a snag late Thursday over Mexico’s reluctance to cut its share of oil, reportedly 400,000 barrels a day, leaving the deal in limbo. In the statement, the group said the deal was conditional on Mexico’s consent.