New Delhi | Jagran Business Desk: The crude oil prices have climbed up to 7.7 per cent as Oil and Petroleum Companies (OPEC) and its allies agreed on "historic" output cuts to prop up prices hammered by the coronavirus crisis and a Russia-Saudi price war.
While the US benchmark WTI climbed 7.7 percent to USD 24.52 a barrel in early Asian trade while Brent was up 5.0 percent at USD 33.08.
The OPEC producers dominated by the world's largest oil supplier Saudi Arabia and allies led by Russia thrashed out a compromise deal via videoconference on Sunday after Mexico had baked at an earlier agreement on Friday.
In the compromise on Sunday the oil exporting countries agreed to a cut of 9.7 million barrels of crude oil supply per day from May, according to Mexican Energy Minister Rocio Nahle, down slightly from 10 million barrels a day envisioned earlier.
OPEC Secretary General Mohammad Barkindo called the cuts "historic".
"They are largest in volume and the longest in duration, as they are planned to last for two years," he said as quoted by AFP.
Barkindo added that the deal "paved the way for a global alliance with the participation of the G20".
Oil prices have fallen since the beginning of the year due to the coronavirus pandemic that has lowered the demand as countries around the world have put their populations under lockdown.
Compounding the problem, key players in the business Russia and Saudi Arabia had engaged in a price war, ramping up output in a bid to hold on to market share and undercut the US shale producers.
The rise in prices of crude oil did not had an immediate impact in India as the fuel prices remained unchanged. While petrol was being sold at Rs 69.63 per litre, Diesel was available at Rs 62.33 per litre. In Mumbai, the prices remained stagnant at Rs 76.29 (Petrol) and Rs 66.19 per litre (Diesel) respectively.
(with agency inputs)
Posted By: James Kuanal
