mo4ch:>Will OPEC+ production cuts agreement save the troubled oil market? | Mo4ch News

The historic oil deal meant to help crude prices rebound amid the coronavirus crisis has come into force. Starting today, global oil production is set to be slashed by nearly 10 million barrels per day.On April 12, the group known as OPEC+, which includes 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and 10 other major oil-producing states led by Russia, finalized the deal to cut crude output. Effective for two years, the accord includes several stages. The initial 9.7 million barrels per day (bpd) cuts will be reduced to 7.7 million bpd in July. Starting in 2021, the caps will stand at 5.8 million bpd till 30 April 2022, when the deal is set to expire. The parties will weight on the extension of the deal in advance, at the end of 2021.However, the cut, which equals roughly to 10 percent of global output, may not be enough to offset the supply glut. Many analysts agreed that the reduction remains dwarfed by a steep demand drop that could reach 30 million b…