Saudi Arabia and Russia have reached an agreement in principle to cut oil production, The Wall Street Journal reported Thursday.
The Organization of the Petroleum Exporting Countries is holding a virtual meeting with its allies, which include Russia, with a goal to help balance the oil market that has suffered from a drop in demand tied to efforts to stop the spread of COVID-19 and a price war between Moscow and Riyadh that has flooded the world with crude. Under the agreement in principle, Saudi Arabia would remove 4 million barrels a day from its April production levels, while non-OPEC member Russia would cut 2 million barrels a day, The Wall Street Journal reported.
Iraq and other major oil exporting nations in the OPEC+ have not yet agreed on specific oil production cuts. May West Texas Intermediate crude CLK20, -8.29% was up $1.02, or 4.1%, to $26.11 a barrel. June Brent crude BRNM20, -4.01% rose 70 cents, or 2.1%, to $33.54.