Trump says OPEC+ planning to cut production 20m bpd

Top global oil producers are considering slashing output by 20 million barrels a day under the terms of a deal to boost prices, US President Donald Trump said on Monday.

Trump's tweet came after OPEC producers and their allies agreed on Sunday to cut production by 9.7 million barrels per day, which some analysts feared would not be enough to stem the damage from the combination of plunging demand amid the coronavirus pandemic and a price war between Russia and Saudi Arabia.

"Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported," Trump tweeted.

"Thank you to all of those who worked with me on getting this very big business back on track, in particular Russia and Saudi Arabia."

The US benchmark WTI oil price climbed 1.4 percent in New York after Trump's tweet to $23.10, while Brent rose 0.9 percent to $31.76.

OPEC members dominated by Saudi Arabia and other producers led by Russia have been negotiating a deal to cut production and support prices for days. Mexico balked at an agreement on Friday, leading Trump to step in and say the US would help Mexico meet its end of the bargain.

After a Sunday videoconference, the top producers agreed to slash daily production by 9.7 million barrels from May, according to Mexican Energy Minister Rocio Nahle, down from the 10 million barrels a day envisioned earlier. OPEC Secretary General Mohammad Barkindo called the cuts "historic".

"They are largest in volume and the longest in duration, as they are planned to last for two years," he said. The agreement between the Vienna-based Organization of the Petroleum Exporting Countries and non-OPEC producers foresees deep output cuts in May and June followed by a gradual rise in production until April 2022.