Trump reports U.S. may ‘help Mexico along’ with oil production cuts in coronavirus press briefing
As Americans follow stay-at-home orders to ‘stop the spread’ of the novel coronavirus, demand for oil has plunged and prices have reduced drastically. The Organization of the Petroleum Exporting Countries (OPEC+) pressured nations to cut oil production this week in an effort to raise prices and stabilize the market.
Final agreements are contingent on Mexico’s cooperation. Mexico intends to keep production higher than the proposed cuts suggest, according to Reuters, OPEC+ nations sought a 400,000 barrel decrease per day in production.
With an excess of oil in Mexico and jobs at risk in the U.S., Trump offered a deal between the neighboring countries, stating it may “help Mexico along” by cutting its production by 250,000 barrels, with reimbursement at a later date.
Trump stated that the U.S. is already running out of space, saying, “[We’re] using ships to store oil. There’s never been anything like this.”
The agreement, made during discussions with Russia, Saudi Arabia and OPEC+ nations on Thursday, would reduce Mexico’s oil production by 100,000 barrels per day. Even without the production cuts, it would take years to catch up with the global supply of oil, according to Trump.
PHOTO CREDIT: Official White House Photo by Tia Dufour