The Sultanate is reeling from the double whammy of low oil prices and Covid-19. But with intra-GCC tensions high, a consensus on aid won’t come easily.
Ministers of the cartel and outside nations led by Russia meet via video conference to adopt the measure, aimed at cutting the excess production depressing prices as global aviation remains largely grounded due to the pandemic.
Prices rally as top producers say they would turn taps lower, while there were also hopes for a pick-up in demand as economies slowly reopen amid Covid-19 pandemic.
After the price of US benchmark crude set for May delivery fell as low as -$40 per barrel, we bring you answers to pressing questions ranging from what's a crude future, why are we short on oil storage and what it means for you, the consumer.
US West Texas Intermediate (WTI) crude for May delivery was up $38.73 at $1.10 a barrel by 0117 GMT after settling down at a discount of $37.63 a barrel in the previous session.
US crude oil futures turned negative for the first time in history as storage space was filling up, discouraging buyers as weak economic data from Germany and Japan cast doubt on when fuel consumption will recover.
Prices recently crashed as the coronavirus pandemic saps global demand, with the situation compounded by a supply glut resulting from a price war between Opec cartel kingpin Saudi Arabia and non-Opec rival Russia.
The US president reversed his long-held dislike of OPEC and now needs it to help the struggling oil industry.
Celebrations for oil production cuts may have come too soon and will mainly benefit a few rich countries and shareholders.
The morning after the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia agreed to reduce output by 9.7 million barrels per day in May and June.
OPEC, Russia and other oil producing nations agree to cut output by a record amount, representing around 10 percent of global supply, to support oil prices amid coronavirus pandemic.
Thursday's Opec videoconference was part of a series of talks on stabilising the market, where oil prices have more than halved since the start of the year amid a pricing war between Saudi Arabia and Russia.
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