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OPEC standoff with Mexico imperils 10M-barrel oil cut
Coronavirus wiped out large chunk of oil market, Trump says
President Trump says there’s a large supply of oil because it isn’t selling during coronavirus.
A deal between OPEC and nations including Russia to boost oil prices involves a 10 million barrels per day cut until July, then an 8 million barrels per day cut through the end of the year, though the cartel said Friday its approval hinges on Mexico's agreement.
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A marathon videoconference call between OPEC and other producers lasted until early Friday morning, when it apparently devolved into a standoff. The cartel, Kuwait and Saudi Arabia say Mexico's refusal to agree blocked the proposed accord.
Mexico has yet to respond, though the deal comes as prices have been gutted by the coronavirus pandemic and the COVID-19 illness it causes. Analysts warn even these proposed cuts may not be enough to offset the loss in demand.
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“COVID-19 is an unseen beast that seems to be impacting everything in its path,” OPEC Secretary-General Mohammed Barkindo said at the start of the meeting, according to a statement. “There is a grisly shadow hanging over all of us. We do not want this shadow to envelop us. It will have a crushing and long-term impact on the entire industry.”