OPEC+ Agrees To Historic Deal To Cut Oil Production

Following several days of meetings that began last Thursday, a historic oil deal has been reached.

OPEC+ have agreed to cut production by 9.7 million barrels per day for May and June. Mexico, which was a key country that that kept an agreement delayed, will cut its output by about 100,000 barrels per day. In all, this represents about 10% of global supply.

Oil prices have been volatile since Russia's disagreement with OPEC's decision to cut oil supply in early March resulted in a price war with Saudi Arabia.

"Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs," according to Reuters.

Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.

"In the biggest oil output cut ever, exceeding four times the cuts approves during the 2008 financial crisis, the countries will keep gradually decreasing curbs on production in place for two years until April 2022," Reuters reported.

The United States Oil Fund LP USO fell 7.26% to $4.98 on Thursday, while the Direxion Dly S&P Oil&Gs Ex&Prd Bl 3X ETF GUSH closed 0.7% higher at $24.51.

Related Links:

What To Know About The Stock Market's Best Week Since 1974

How The US Response To COVID-19 Stacks Up Versus Italy, Spain And More

Posted In: coronavirusOilOPECOPEC+NewsCommoditiesMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.