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The Organization of the Petroleum Exporting Countries (OPEC) has announced that major oil producers, with the exception of Mexico, have agreed to reduce production in May and June by 10 million barrels per day, to counter the sharp drop in prices.

OPEC and its allies agreed to cut the production as the coronavirus pandemic reduced crude demand.

The agreement, however, needs Mexico’s approval, OPEC said.

Mexico did not agree to the deal as it would have to cut 400,000 barrels per day.  The country proposed a reduction in its oil production by 100,000 barrels per day (bpd) for the next two months.

Following the meeting, a statement released by OPEC noted that the measures were “agreed by all the OPEC and non-OPEC oil-producing countries participating in the Declaration of Cooperation, with the exception of Mexico, and as a result, the agreement is conditional on the consent of Mexico.”

Furthermore, from 1 July 2020 until the year-end, oil producers agreed to reduce production by eight million barrels per day.

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By GlobalData

OPEC also added that beginning in January 2021, the cuts would decrease to six million barrels per day and this would continue through April 2022.

The webinar of OPEC countries and their allies including Russia, and other key non-members, commenced after 1440 GMT on Thursday.

Saudi Arabia Minister of Energy Prince Abdul Aziz Bin Salman chaired the virtual meeting while Russia Minister of Energy Alexander Novak acted as the co-chair.