Saudi Arabia has been flooding the market with excess barrels of crude. If this continues, the world will quickly run out of oil storage. This past week, OPEC and its allies finally agreed to cut production by a historic 10 million barrels per day (bpd). But this plan came to a stop when Mexico dug in its heels. OPEC and its allies asked the country to cut production by 400,000 bpd, but it agreed to only 100,000 bpd. On Friday morning, Mexico reached a deal for further cuts after President Trump agreed to cut an additional 250,000 bpd. OPEC still needs to approve this measure in order to move forward with the production cut agreement. |
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