A man makes a phone call outside the OPEC headquarters during the 177th Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, Austria, on December 6, 2019. (Photo by AFP)

Major oil producers have reached a partial agreement on the reduction of their production to prop up prices hammered by the coronavirus pandemic but Saudi Arabia says the final accord depends on Mexico’s consent to go along with the proposed cuts.

The Organization of the Petroleum Exporting Countries (OPEC) announced after a video conference on Friday that the main member states had agreed to cut output in May and June by 10 million barrels per day (bpd) after marathon talks to counter a collapse in prices.

The Vienna-based organization said the agreement also reduces production by eight million bpd from July to December.

Another virtual meeting is scheduled for June 10 to determine further actions, as needed to balance the market, OPEC said.

Media reports indicated that the sticking point in reaching a final accord was the refusal of Mexico to sign up to its share of cuts under the deal, which would have been 400,000 barrels per day.

Mexican Energy Minister, Rocio Nahle Garcia, tweeted that her country had suggested a cut of 100,000 barrels in the next two months.

I hope (Mexico) comes to see the benefit of this agreement not only for Mexico but for the whole world. This whole agreement is hinging on Mexico agreeing to it, Saudi Energy Minister Prince Abdulaziz bin Salman told Reuters by telephone.

Saudi Arabia is to host an extraordinary meeting by video conference at 1200 GMT on Friday for energy ministers from the G20 group of major economies to resume discussions on the issue.

The novel coronavirus has cut demand and a month-long price war between Saudi Arabia and Russia has left the market awash with crude. During the recent month, prices have plummeted as the market has waited for a plan to cut production from OPEC and its allies.

Saudi Arabia ramped up production to historic levels of 12 million barrels per day in March and offered major discounts for its future oil deliveries, causing a major fall in prices in a market that had already been hit by lower demands because of the spread of the new coronavirus pandemic.

The International Energy Agency warned Monday that the world was poised to face its first annual decline in oil consumption in more than a decade due to the pandemic.

The outbreak has shut down large swathes of the global economy, including key sectors such as air travel, manufacturing and retail.

The coronavirus, which causes a respiratory disease known as COVID-19, is currently affecting more than 200 countries and territories across the globe. It has so far infected over 1.6 million people and killed more than 96,000 others.

SOURCE: PRESS TV