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The oil market has come back under pressure this week.
Concerns have resurfaced over the recently proposed 10 million barrel per day production cut drafted last week between OPEC+.
Saudi Arabia and Russia finally put their differences aside and agreed to the cuts. However, these are subject to approval from Mexico.
Mexico Disappoints With Agreed Cuts
Mexico initially showed resistance to the proposal. And, following a tense stand-off between Mexico and Saudi Arabia over the weekend, Mexico finally agreed to the cuts.
However, Mexico has only agreed to cut 100k barrel per day, not the 400k proposed by Saudi Arabia.
As such, the total amount of oil to be withheld from the market by the 23 countries involved will be 9.7 million barrels per day, not the 10 million proposed last week.
The market reacted with disappointment to the news. Initial expectations fuelled by tweets from President Trump indicated potential cuts of as high as 15 million barrels per day.
And, following the Mexico-Saud...
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