OPEC Moves To Support Oil Prices As COVID-19 Fallout Spreads

Thebe Mabanga

The world’s major oil producers moved to support the price of Brent crude oil as uncertainty over the depth and extent of the COVID 19 pandemic fallout continued to grip the global economy.

On Monday, the Organisation for Petroleum Exporting Countries (OPEC) announced plans to cut just under 10 million barrels a day from global oil production.

This is to remove the glut of excess supply caused by the fact that most major economies are under lockdown,

But the move will also raise the price of oil and maintain profitable margins for producers.

Following the announcement, the price of Brent Crude Oil traded at $32 a barrel. This is after falling to 20 year lows of $20 a barrel over the past week after trading above $ 70 a barrel earlier this year.

The deal followed a weekend of marathon video conferencing meetings between OPEC and ministers in