An Agreement Against Historical Decline in Oil Prices Expected

An Agreement Against Historical Decline in Oil Prices Expected

Saudi Arabia, Russia, and other major oil producers are aiming to conclude an agreement aimed at stopping this restriction and the resulting declines. Despite officials saying that as a result of negotiations on Sunday, progress was made on decisions, there are still significant obstacles. OPEC + and other producers will meet, and the meeting, which has already been postponed once, will be held on Thursday. Russia and Saudi Arabia are waiting for the USA to join. However, US President Donald Trump does not seem enthusiastic. Crude oil prices fell 50 percent this year as the economic effects of the pandemic wiped a third of global demand. The decline in prices has been so severe that it has shaken the stability of oil-dependent countries. Even the International Energy Agency (UEA), which represents oil-consuming countries, has called for action. Officials know that in the absence of an agreement for a supply cut, the market will force producers to cut production since there is no storage space left. If an agreement of 10 million barrels is signed daily, this would have little effect on the estimated excess supply of 35 million.