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OPEC, Russia and other oil producing nations agreed on Sunday to reduce output by 9.7 million barrels per day (bpd) for two months.
The preliminary agreement, which was reached last Thursday, was delayed to reach a compromise with Mexico to cut output by 400,000 bpd. However, Mexico said it will reduce oil production by 100,000 bpd.
The output cut amounts to some 10% of global oil supply that hit 100 million bpd, before the novel coronavirus outbreak.
The United States, Canada, Brazil and Norway are likely to cut around 3.7 million bpd until 2020-end, amid weak demand and low capital expenditure by energy producers in those states.
Demand for oil and derivatives has been hammered by the curfew and lockdown imposed in many cities worldwide, the suspension of domestic and international flights to curb the coronavirus spread.
Global markets are closed for the Easter weekend.
OPEC said it would ease output cuts between July and December by 2 million bpd and by further 2 million bpd between January 2021 to April 2022.
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