The energy ministers of the Group of Twenty began an extraordinary meeting on Friday to discuss the stability of global oil markets, at a time when Russian President Vladimir Putin plans to hold new talks, amid a Mexican refusal to join the efforts to reduce production.
Reuters quoted two sources as saying that energy ministers of the Group of Twenty had started remote talks today, to discuss how they can help OPEC and its allies to stabilize oil prices.
The energy ministers session hosted by Riyadh is expected to lead to a broader agreement with non-OPEC countries, including Mexico, the United States and Canada.
Riyadh, which currently holds the rotating presidency of the group, said that the meeting comes to ensure "market stability" after the stagnation of oil prices due to the impact of the Corona pandemic emerging.
In a speech to the Group of Twenty, US Energy Secretary Dan Browell said his country calls on all countries to harness "various tools at their disposal" in order to reduce excess oil supply.
He added that the United States expects its production to drop by about two million barrels per day by the end of the year.
The energy ministers meeting comes a day after the "OPEC Plus" meeting, which discussed the terms of a new formula to reduce production and market stability.
Sources from the participants in the meeting confirmed to the island their intention to form a special committee to monitor the stability of global oil markets.
And OPEC announced the results of the OPEC Plus Ministerial Meeting, and called for reducing the total production of crude oil to less than ten million barrels per day starting from next May for two months, then to eight million barrels per day for a period of six months, that is, until the end of next December From this year, then to six million barrels per day from January 2021 to the end of April 2022, relying on that in the oil production standard in October 2018.
The agreement excluded Saudi Arabia and Russia, as they will have a production standard of 11 million barrels per day.
The battle with Mexico
And OPEC Plus said that a final agreement depends on Mexico's participation in the agreement after it refused the oil cuts that it was asked to implement.
It is expected that the oil producers of the OPEC Plus group led by Saudi Arabia and Russia will press Mexico on Friday to conclude an agreement to collectively reduce production by ten million barrels per day, before asking other countries to implement reductions of five million barrels per day.
The Kremlin said today that "work" is being done to persuade Mexico to join efforts to curb production.
Russian President Vladimir Putin said Friday that he intends to hold new talks on oil prices, after phone talks with US President Donald Trump and the Saudi leadership, TASS news agency reported.
OPEC, Russia and other allies outlined plans on Thursday to cut their oil production by more than a fifth, and said they expected the United States and other producing countries to join in their efforts.
Putin announced that Moscow and Washington are trying to organize joint action in global markets, as well as on combating the Corona virus.
For his part, the US President said that he had held talks he described as good over the phone with the Russian President and Saudi King Salman bin Abdulaziz. He added during the daily press conference at the White House that he expected OPEC and other countries to announce soon an agreement.
The United States urged global cooperation to give a boost to the oil market, following a price war that followed the failure to agree to cut production in early March.
Oil prices fell yesterday, despite OPEC's approaching agreement, as orders to impose general isolation measures around the world took the lives of the global economy, and traders believe that even implementing a combined cut of 15 million barrels per day will provide little to achieve stability in the market. .
The markets are closed today for the Good Friday holiday in the major centers, but yesterday, Brent crude traded at about $ 32 a barrel, which is half of the level recorded at the end of 2019.