The 13 nations in the Organization of Petroleum Exporting Countries (OPEC) reached agreement with Russia, Mexico, the United States and seven other major oil producers Sunday to cut production by a combined 9.7 million barrels a day in May and June. President Trump resolved an impasse between Saudi Arabia and Mexico that threatened to sink the agreement, intended to raise oil prices as demand plummets amid the COVID-19 coronavirus pandemic. The cuts, if implemented, would reduce global oil supply by about 13 percent.
Trump, who has long criticized OPEC for raising U.S. gas prices, tweeted Sunday that "the big oil deal with OPEC plus" will "save hundreds of thousands of energy jobs in the United States," and he thanked Russian President Vladimir Putin and Saudi King Salman. As part of the deal, the U.S. agreed to cut 300,000 barrels a day, making up for Mexico's shortfall, The Wall Street Journal reports, though "it couldn't be determined whether that was in addition to other U.S. cuts, or how the U.S. cuts would be implemented." Analysts are also skeptical the cuts will be enough to shore up oil prices.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Tesla Cybertrucks recalled over dislodging panelsSpeed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of businessSpeed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pausesSpeed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocksSpeed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor dealSpeed Read The strike could have shut down major ports from Texas to Maine
-
Biden expected to block Japanese bid for US SteelSpeed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
-
Judges block $25B Kroger-Albertsons mergerSpeed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
-
Rupert Murdoch loses 'Succession' court battleSpeed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
