Oil prices jumped on Thursday after sources said Russia and Saudi Arabia have a new deal to cut oil output drastically in response to a collapse in global demand from the coronavirus.

A worldwide lockdown to slow the spread of the coronavirus pandemic has cut fuel demand by roughly 30%, and contributed to a crash in prices that took major benchmarks down by more than two-thirds.

Prices surged on Thursday as producers appeared set to cut production sharply, though exact details were unclear.

Brent LCOc1 futures were up $2.24, or 6.8%, at $35.08 a barrel by 10:29 a.m. EDT (1429 GMT), while U.S. crude CLc1 rose $2.18, or 8.7%, to $27.27.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a group known as OPEC+ - were meeting by video conference on Thursday. A senior Russian source told Reuters that Russia and Saudi Arabia have removed their main obstacles to a new deal, which could be as much as 20 million bpd, though the exact details were as of yet unclear.

Such a deal would be by far the biggest output cut ever agreed by OPEC, but Russia has insisted it will only reduce output if the United States joins the deal. U.S. officials have not said they will force producers to cut, and U.S. laws prevent coordination among private companies.

The last OPEC meeting in early March ended acrimoniously, with Russia and Saudi Arabia unable to come to an agreement to curb output as the virus spread, adding to the slump in prices.

A source briefed on Saudi Arabia’s oil policy said it is ready to cut up to 4 million bpd of its production but only from its record output levels of 12.3 million bpd achieved in April.

Russia has said it wants output to be cut from the January-March levels before Saudi production jumped.

Source: https://www.reuters.com/article/us-global-oil/oil-prices-soar-as-opec-prepares-to-cut-supplies-idUSKCN21Q3DV

Good News. Let's hope and pray it's sustained. Patriots like me are genuinely happy ... While paid senseless zombies

Who is pushing thread to front pages this days in nairaland, 90% of the people who visit nairaland don't benefit from Oil. Wether Oil price is high or low..., Most people here don't rip the benefits

Perfect timing, Buhari and his cohorts can now finish Nigeria for good.

This is a good news that depends on oil to grow their economy (example: Nigeria)

But our leaders will still swallow all the money

Still has nothing to do with improved living condition of the poor family in Ajegunle or Zaria.

Okay

is it fair enough for naija?

Does this mean the value of the naira will no longer go up?

Great

L

Asuquo sef

$2 na soaring high.. It's well

Beta suya, beta suya , fancha bukwa na aru Nama ka ona afio

Igbo adage

Now Buhari can cash out big time. operation no mercy on our common wealth.

Bad news for some people.

Alleluia somebody!

Lol 2$ price difference

But we still made a killing sha in the markets

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NaijadrivaCars:


Asuquo sef

Like in summary what does this imply and how will it affect us Nigerians

Nigeria Government now will be like...

Hmmmm

Hurayyy

This is an amazing news

What this news means is that there is a breakthrough and the effects of the covid-19 is meddling down.

Guys I need airtime o, can you all imagine that I have less than 3mb left and to find money for my pocket now, u have to wash all my trousers and check the pockets first and even with that na with hope prayers and probability. Abeg if u have d means, kindly assist

08063810254

Hasn't Buhari diversified our oil dependent economy?

Bad news

As usual when oil prices rise, we go back to our monoeconomic ways again.

Knew Russia will finally see sense. $2 not so great though.

Nigeria back on track. Lemme go fill up my tank before petrol goes up to N200 per litre. They've already warned us that there will be no more subsidies.

I don't know whether to be happy or not. I still can't figure out how the increase have affected the ordinary man on the street. I think I should just free myself of anything oil. Therfore I'm less concerned.

fulaniHERDSman:
Good News. Let's hope and pray it's sustained.

now post this without crying

CodeTemplar:
Hasn't Buhari diversified our oil dependent economy?

He has but our foreign exchange source needs to be diversified.

This will be interesting. What will happen to our subsidy if price of oil rises? Will it ressurect again?

Corona virus is a hoax


See my signature to earn money