Leaders of the world’s top three oil producers, Russian President Vladimir Putin, US President Trump and Saudi Arabia’s King Salman, all supported the OPEC+ deal to cut global crude output, the Kremlin said on Sunday. The US President was facing pressure to support the energy sector, which was ravaged by the coronavirus pandemic. The OPEC+ group, led by Saudi Arabia and Russia, finalised plans to cut oil production by a combined 9.7 million barrels per day. OPEC producers said the cut global petroleum output could in total remove around a fifth of global oil supply.
From Russia with love? Trump and Putin in successful oil talks Vladimir Putin’s brutal EU warning exposed: ‘You will swallow poison!’
Trump announced on Twitter on Sunday: “The big Oil Deal with Opec Plus is done.
“This will save hundreds of thousands of energy jobs in the United States.
“I would like to thank and congratulate President Putin of Russia and King Salman of Saudi Arabia.
“I just spoke to them from the Oval Office.
DONALD TRUMP praised a deal made by The Organisation of the Petroleum Countries to cut oil petroleum (Image: PA)
“Great deal for all!”
The deal was at risk of falling apart when Mexico saught an exemption from the deal, angering Saudi Arabia.
US pressure led to them conceding a smaller cut to the smaller oil producer.
The cuts will begin in May for two months and then diminish in size before expiring in April 2022.
The cartel’s big Gulf producers, Saudi Arabia, the United Arab Emirates and Kuwait, will deepen their own cuts, adding to the total.
READ MORE: Robert Peston’s brilliant economic vision for UK after downturn revealed
Global oil demand is estimated to have fallen by a third of it’s expected levels. (Image: PA)
Trump opens talks with Russia on Saudi Arabia oil price war Oil row: Furious Iran issues warning ahead of OPEC+ meeting
Global oil demand is estimated to have fallen by a third of it’s expected levels.
Government lockdowns and grounded flights have led to a massive drop in usage.
Oil prices slumped in March to an 18-year-low after Opec+ failed to agree cuts.
The deal is expected to save producers from complete collapse, but the industry is still predicting substantial damage and losses.
Priti Patel accuses Yvette Cooper of political point scoring after row [LATEST]
Coronavirus breakthrough: COVID-19 test gives result in an hour [UPDATE]
How to end Premier League and EFL season now [ANALYSIS]
The OPEC group led by Saudi Arabia and Russia finalised plans to cut oil production by a combined 9.7 million barrels per day. (Image: PA)
Worldwide coronavirus cases have been rising to a total of 1,849,472.
The United States remains the country with the highest infections, with 558,447.
As of Sunday evening, the country had seen a total of 21,991 deaths, with 1,414 in one day.
Russia and Saudi Arabia reported 15,770 and 4,462 confirmed cases respectively.
The United States remains the country with the highest coronavirus infections, with 558,447. (Image: PA)
Meanwhile, Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.
Brent crude LCOc1 futures rose $1.23, or 3.9%, to $32.71 a barrel by 0058 GMT after opening at a session high of $33.99. U.S. West Texas Intermediate (WTI) crude CLc1 futures were up $1.39, or 6.1%, to $24.15 a barrel, after hitting a high of $24.74.
IHS Markit Vice Chairman Daniel Yergin said: “What this deal does is enable the global oil industry and the national economies and other industries that depend upon it to avoid a very deep crisis.
“This restrains the build-up of inventories, which will reduce the pressure on prices when normality returns – whenever that is.”