Saudi, Russia Historic Production Deal Turns Focus on G-20 - Bloomberg

Saudi, Russia Historic Production Deal Turns Focus on G-20 - Bloomberg:

Saudi Arabia and Russia agreed to record oil production cuts in an effort to revive the market from a debilitating coronavirus-induced slump.

Attention now turns to the Group of 20 energy ministers meeting on Friday. Contribution from major producers including the U.S. and Canada could boost efforts to revive prices after the OPEC+ historic agreement failed to push crude higher on Thursday.

Oil’s spectacular price crash this year has threatened the stability of oil-dependent nations, forced major companies such as Exxon Mobil Corp. to rein in spending and risked the very existence of small independents. OPEC and its allies have been put under intense pressure by President Donald Trump and American lawmakers, who fear thousands of job losses in the U.S. shale patch.

OPEC+, meeting by video conference, tentatively agreed to cut production by about 10 million barrels a day in May and June, delegates said. Saudi Arabia and Russia, the biggest producers in the group, will each take output down to about 8.5 million a day, with all members agreeing to cut supply by 23%, one delegate said.