A devastating price war ended between Saudi Arabia and Russia after the world’s top oil producers agreed on a deal to cut global petroleum output by nearly 10%.The agreement emerged after week long rally of bilateral calls and video conferencing of ministers from the Organisation Of Petroleum Exporting Countries (OPEC) and the group of 20 nations(G20).
Following this deal, there was a rise in price by 4% almost $33 for a barrel in London’s market. The decision was taken after the global pandemic hit the world’s economy. The OPEC+( group of OPEC, Russia and other producers) will be cutting 9.7 million barrels per day and a total of 20 million barrels per day,20% of the global supply will be cut.
The decision was taken after the US President Donald Trump’s intervention and pressures.President Trump personally brokered the deal with Mexican President Andres Manuel Lopez Obrador, Vladimir Putin, the President Of Russia and King Salman of Saudi.
The demand for Gasoline, jet fuel and diesel is collapsing after the virus paralyzed the air and ground travel.