Mexico puts OPEC and non-OPEC’s meeting into doubt
Oil importing nations OPEC and its allied nations fail to secure a deal. On Thursday, the meeting took place between OPEC (Organization of Petroleum Exporting Countries) and non-OPEC countries. This conference was regarding the decrease in historic amounts of crude oil production. Mexico pulls back and does not agree on the quantity of output proposed cut.
OPEC+ alliance refers to OPEC and other ten non-OPEC nations, including Russia and Mexico. Currently, there are 21 countries under OPEC+ alliance. OPEC+ alliance proposed a deal to decrease crude oil production by 10 million barrels per day(BPD).
On Thursday, in the United States, West Texas Intermediate (WTI) crude oil futures market fell around 9.29%. It closed at settling at $22.76 per barrel. In the morning session, the contract rally more than 12% and trading at a meeting high.
International benchmark, Brent crude oil futures market slipped by 4.14%. It closed for the week, settling at $31.48. Early morning, Brent crude oil was hitting high at $36.40. Both WTI and Brent crude oil futures markets are in bear territory. Oil markets are closed due to Good Friday.
Key Points:
- On Thursday, the deal agreed by all OPEC and non-OPEC nations. They all participated in the conference except Mexico.
- It means the production cut of crude oil nearly 10% of the supply will not take place. They need to receive consent from all major economies.
On Friday, Energy ministers of G-20 nations will arrange a video meeting. They will discuss the outcome of OPEC and non-OPEC countries.