The increasing prevalence of the Corona virus has led to a decline in crude oil demand from around the world. That is why OPEC, an organization of oil producing nations, has decided to reduce oil production by 10 percent
At a meeting on Sunday (April 12) through video conferencing, it decided to reduce oil production. This is the largest reduction in oil production ever.
OPEC is an organization of oil producing countries. Non-member countries of the organization but non-member oil producing countries like Russia, had on April 9 thought about banning oil production. But Mexico opposed it.
Although the OPEC has not yet made an official announcement regarding the proposal to cut oil production, other nations have confirmed the report.
So far it has become clear that OPEC members and allied countries have decided to reduce oil production by 97 million barrels per day.
This is a very important decision. Because not only the OPEC member states, the United States, the world’s largest oil supplier, and other member countries of the G-20 Organization have also approved the decision.
US President Donald Trump and Kuwait’s Energy Minister Dr. Khaled Ali Mohammed Al-Fadel tweeted the news. However, Saudi Arabia’s energy ministry and Russia’s state news agency Tassan also confirmed the decision on Sunday (April 12).
Three billion people worldwide are locked out of their homes because of the corona virus. Therefore, the demand for oil has decreased by almost three times.
In March, oil prices had fallen to the lowest level in the past 18 years. Oil prices were falling due to the OPEC not agreeing to the decision to cut oil production.
Differences between Russia and Saudi Arabia had led to the decision to cut down on oil production. On April 2, oil prices fell after US President Donald Trump expressed hope that the two countries would end their differences.
