The main points of the agreement to cut oil production
- a cut of circa 9.7 million barrels a day of oil
- 13-nation OPEC and others (Russia, US are two) agreed to share cuts
Its unclear how the cuts are to be apportioned, and how the US intends to enforce its promised cuts, but indications are (its is very unclear, but these from sources, awaiting confirmation):
- Mexico cut 100,000 barrels a day
- US by 300,000 barrels / day
- Saudi Arabia's production to be reduced to 8.5m bpd (from the current whopping 12 million bpd)
- G20 output cut amounts to 3.5 m bpd
I'll be back with more on this, please note once again those numbers for various countries cited above are not certain (at least to me).
Oil trading, the CL contract, begins at 6pm NY time Sunday (2200GMT) - the cuts announced should be supportive of price, or at least avert the otherwise expected plunge at reopening if no agreement at all was reached.
