Lagos — Oil prices climbed more that four percent on Monday after the Organization of the Petroleum Exporting Countries, OPEC and other non-OPEC oil-producing countries agreed to cut almost 10million barrels of oil per day off the market starting from this month.
International Brent surged to $31 around 11am Nigerian time after a previous close of $27 per barrel.
Mexico and US shale producers joins OPEC and others in a virtual meeting which ended on Sunday.
Mexico and US agreed to cut a combined 400 000 barrels per day out of the 9.7 million barrels per barrel cut.
A rebound of prices by $15 per barrel in the short term is expected after now.
The new agreement will see a supply cut by 9.7 million barrels per day between May and June 2020, eight million barrels per day between July and December 2020 and six million barrels per day from January 2021 to April 2022.
The new deal is quite bigger as the the G20 Energy Ministers, as well as the African Petroleum Producers’ Organization, APPO, have throw weight behind its success.