Iran speaks about OPEC deal to cut crude production

The intergovernmental oil organisation OPEC and other oil producers agreed on Sunday to boost oil prices by cutting nearly 10 million barrels a day in production, or a tenth of global supply.

Mexico's energy minister said on Twitter that the group of nations agreed to cut 9.7 million barrels a day beginning on 1 May.Energy officials from other countries shared similar information after the officials met by video conference on Sunday.

Iran's oil ministry also confirmed the 9.7 million cut for May and June, saying the so-called OPEC countries have agreed to have Mexico reduce its output by 100,000 barrels for those months only.

That had been a sticking point for the accord meant to boost global energy prices.The agreement would be an unprecedented global pact to stabilize the market. Meanwhile, Iranian Oil Minister Bijan Zanganeh told state television that Kuwait, Saudi Arabia and the United Arab Emirates would cut another 2 million barrels of oil a day between them atop the OPEC deal to help re-balance the markets.

Nigeria's Petroleum Resources Ministry said in a statement that the other cuts would stand in the deal, meaning an 8 million barrel per day cut from July through the end of the year and a 6 million barrel cut for 16 months beginning in 2021.

"This will enable the rebalancing of the oil markets and the expected rebound of prices by $15 per barrel in the short term," the ministry said in a statement.

Mexico had initially blocked the deal but its president, Andrés Manuel López Obrador, had said Friday that he had agreed with U.S. President Donald Trump that the U.S. will compensate what Mexico cannot add to the proposed cuts.

"The United States will help Mexico along and they'll reimburse us sometime at later date when they're prepared to do so," Trump said at a White House press briefing Friday.

(Image Credit: AP)