#OPEC; #GlobalProductionOfCrudeOilCut; #EconomicStability; #Covid19Pandemic
Calgary (Alberta), Apr 12 (Canadian-Media): An unprecedented move was made by the agreement Apr 12 by the The Organization of the Petroleum Exporting Countries (OPEC) cartel and other oil producers curtail crude production by at least a tenth of global supply to stabilize the market, media reports said.
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OPEC, an intergovernmental organization of 13 nations was founded on 14 September 1960 in Baghdad by the first five members, and headquartered since 1965 in Vienna, Austria.
It was confirmed by OPEC release that the cut would be effective May 1 and continue until June 30.
The deal was supported by Russian President Vladimir Putin, U.S. President Donald Trump and Saudi Arabia's King Salman, which would see global crude output cut by 9.7 million barrels a day.
Drop in prices of fuel and oil due to global measures to slow the spread of the coronavirus resulted in drop in consumption by an estimated 30 million bpd.
Although Canada and Norway had indicated their willingness to cut, but as of Friday, Natural Resources Minister Seamus O'Regan said Canada has not yet promised any specific production cuts.
Alberta, Canada's biggest oil-producing region, "has already formerly curtailed 80,000 barrels per day," O'Regan said.
"Canada is committed to achieving...economic stability...working with provinces, businesses, labour, Indigenous communities and our international partners, including the G20," said O'Regan.