On Thursday, there was a conference between all the OPEC+ nations. According to OPEC, this meeting was scheduled to discuss regarding production cut of crude oil. In this meeting, Mexico comes as a decisive player.
Yesterday, oil-producing countries cartel agreed on decreasing crude oil production. The production cut should be 10 million barrels per day (BPD). Mexico walked out without recognizing the production cut. It surprised all OPEC+ members.
All OPEC+ nations are urging other countries to cut on a production cut to balance the crude market. Norway and Canada both countries agreed to decrease oil production. However, the United States declined to interfere in the crude oil market.
Saudi Arabia’s Prince was asked about crude oil production cut. There is a price war going on between Saudi Arabia and Russia for the last couple of weeks.
Every country has the freedom to take the necessary steps in their interest. No nation can dictate other nations. Each government has its way and approaches. According to their self-best interest, they will decide. Its decision of Mexico to walk out.
Ryan Sitton was the first man who shared the idea regarding production cut in crude oil. There is a global need to decrease crude oil production, he tweets. The output should be somewhere around 20 million barrels per day.
As the global demand for crude oil will decrease sharply in the next couple of months. The United States can further reduce its crude oil output during that period.