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OPEC proposed to reduce global oil supply by 1.5 million barrels per day until the end of 2020. Russia didn't agree.
Due to the decline in global oil consumption caused by the Covid-19 epidemic, the Organization of Petroleum Exporting Countries (OPEC) Friday proposed to cut oil supplies by 1.5 million barrels per day until the end of 2020. This proposal, however, was not accepted due to the resistance of Russia and Kazakhstan.
OPEC member countries expect the Vienna meeting to result in a decision to reduce production, which may not happen if Russia maintains its resistance to decrease its oil activity.
This new cut would be added to others that came into force in Oct. 2018. Therefore, the total reduction would amount to 3.6 percent of the world's oil supply, the lowest decline since the 2008 financial crisis.
On Friday, once it was known that OPEC would not reduce its energy supply, oil prices fell by 8 percent in the most important international markets.