Iranian Oil Minister Bijan Zanganeh said OPEC+ had just struck a deal to cut the group’s output by 10 million barrels per day (including 300,000b/d by US) in May and June 2020 which would be accompanied by G20’s decision to cut its oil output by 3.7 mbd for a year.
"The energy ministers of G20 were reported to cut their output by 3.7 mbd within a year," Zangeneh told reporters following a videoconference meeting with oil and energy ministers of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC allies.
“During the meeting an agreement was reached for reduction of 10 million barrels a day by OPEC+," he added.
The Iranian oil minister said that there was just a problem with Mexico which was supposed to curb its output by 400,000 b/d which was not endorsed by the Mexican minister, then.
He said since the Thursday meeting, Mexico had agreed to cut only 100,000 b/d of its output in May and June and they said the remaining would be shouldered by the US.
“Anyway, the agreement was finalized and will be implemented by May,” he added.
Furthermore, Zanganeh said, the Saudi energy minister said in the meeting that his country along with Kuwait and the United Arab Emirates had agreed to voluntarily cut their supplies by a further 2 mbd to help the oil prices in the market.
“We hope that the market will be balanced and the result of the deal will hopefully be visible by Monday when global markets reopen,” he added.
Zangeneh said that in fact, when oil barrels are physically removed from the market, it would be very important and determining for the market sentiments.
The output of OPEC+ will be curbed by 9.7 mbd in May and June to be followed by 8 mbd until January 2021. Furthermore, the cuts would continue at 6 mbd from January 2021 through April 2022.
Iran, Venezuela and Libya were still exempted from the cuts.