OPEC+ Countries Outline Draft Agreement, Final Decision Not Yet Complete - Source

© REUTERS / LEONHARD FOEGERThe logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria April 9, 2020.
The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria April 9, 2020.  - Sputnik International
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MOSCOW (Sputnik) - OPEC+ meeting participants have outlined a general draft agreement and, while the process is ongoing, there is yet no final decision, a source in one of the delegations participating in the meeting told Sputnik.

"At this moment there is no final decision [...] There is a general draft, the process is underway. But no decision has been taken," the unnamed source said.

The meeting is said to be close to completion, but Mexico reportedly still has objections, two unnamed sources in different delegations told Sputnik.

Earlier, a source in one of the delegations participating in the OPEC+ meeting who spoke on the record with Sputnik, said that OPEC+ countries had chosen to cut oil production by 22 percent, or 10 million barrels per day, in the months of May through June, followed by a consecutive volume reduction.

"The meeting is still in progress [...] But now the deal looks like this [...] OPEC+ will cut production by 10 million barrels per day in May-June. In July-December; by 8 million barrels per day, then, by 6 million from January 2021 to April [...] Iran, Libya and Venezuela are excluded," the source said.

The source noted that countries would reduce oil production by 22 percent, while for Russia and Saudi Arabia, the basic level from which the reduction would be measured was 11.3 million barrels per day. In this scenario, Russia and Saudi Arabia will be required to produce no more than 8.8 million barrels per day in May-June 2020.

According to the source, a scenario in which the production is cut by 11 million barrels per day by all member states is currently not being discussed. Other non-OPEC producers will reduce their production by 5 million barrels per day, the source added.

Earlier in the day, energy ministers from the OPEC group of oil-exporting countries, Russia, and other oil producers, began a video conference to discuss ways to shore up oil prices amid a global production glut and a coronavirus-driven decline in demand.

Russian Energy Minister Alexander Novak said at the meeting that all oil producers must work together to address the growing overproduction as the pandemic continues to weigh on the global economy. Saudi Arabia compounded the crisis by flooding the market with cheap oil after the OPEC+ deal on output cuts collapsed last month.

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