Oil-Producing Nations Finalize Deal To Cut Output

OPEC and its allies agreed to a historic oil production cut of 9.7 million barrels per day, the largest in history, to address the drop in energy demand due to the coronavirus outbreak. This agreement also resolves a price war between Russia and Saudi Arabia. Mexico initially opposed the plan but was assured by President Trump that the US would reduce its production as compensation. The US, not an OPEC Plus member, is already reducing its output. The cuts will start on May 1st and gradually decrease until April 2022. President Trump praised the deal for saving US energy jobs.

What was the primary reason for the historic OPEC+ oil production cut?

• To increase oil prices

• To respond to a drop in energy demand due to the coronavirus outbreak

• To punish non-OPEC countries

• To support renewable energy initiatives

Which two countries were involved in the price war that the OPEC+ agreement helped resolve?

• Russia and Saudi Arabia

• United States and Canada

• Brazil and Mexico

• China and India

What was the initial production cut proposed by OPEC+ before Mexico's resistance?

• 10 million barrels per day

• 8 million barrels per day

• 9.7 million barrels per day

• 12 million barrels per day

How did the United States contribute to the OPEC+ agreement after Mexico's resistance?

• By imposing sanctions on Mexico

• By increasing its oil production

• By withdrawing from the agreement

• By agreeing to further reduce its production

When will the OPEC+ production cuts begin and how long will they last?

• Start on July 1st and last until the end of August

• Start on April 1st and last until the end of May

• Start on June 1st and last until the end of July

• Start on May 1st and last until the end of June