During a phone talk with the Crown Prince of Saudi Arabia, Mohammed bin Salman, on April 2nd, Trump said that if the Saudis do not begin to reduce oil production, it will not be able to prevent US lawmakers from passing a law on the withdrawal of US troops from the kingdom, Reuters reported citing sources.
The threat to destroy the 75-year-old strategic alliance was at the center of a campaign to pressure Riyadh, which led to a landmark global agreement to cut oil supplies.
For its part, OPEC has affirmed its policy to call on its member countries to significantly cut oil production.
“All countries that have signed an agreement to reduce oil production must strictly abide by it, and even better to overfulfill the plan.”
This was announced today, May 1st, by the President of the OPEC Conference, Algerian Oil Minister Mohammed Arkab .
The terms of the agreement to reduce oil production by 9.7 million barrels per day during May – June should be met at least 100%, the cartel said.
“In the face of the unprecedented difficulties faced by the oil market, it is imperative that all signatory countries fully comply with the agreement on voluntary production cuts. It is important that the goal is to ensure compliance by more than 100%, ” Arkab said.
Today the agreement to reduce oil production by OPEC + countries has entered into force. Its participants should reduce oil production during May – June by 23% from the level of October 2018. The agreement will be valid until the end of April 2022, but from July 2020, the reduction quota will be reduced. Its goal is to correct the imbalance in the demand and supply of oil in the world.