In an apparent breakthrough for the energy industry, Russia and Saudi Arabia brought their price battle on oil to an end on Sunday with pressure from the U.S.
The two major oil-producing nations agreed to head up a dramatic production cut, in which Russia, as well as members of the Organization of the Petroleum Exporting Countries and other energy-producing nations agree to slash output by "around 10% of global supply," according to Reuters.
The deal came after pressure from President Donald Trump and amid the toll on the sector caused by slowdowns globally from the coronavirus crisis.
"The big Oil Deal with OPEC Plus is done," said President Trump over Twitter on Sunday. "This will save hundreds of thousands of energy jobs in the United States. I would like to thank and congratulate President Putin of Russia and King Salman of Saudi Arabia. I just spoke to them from the Oval Office. Great deal for all!"
Moves by Mexico had thrown a wrench in progress on an agreement earlier by the nearly two dozen oil-producing OPEC and OPEC-plus nations, according to the Financial Times, but the nation was pacified.
The combined oil producing nations, known collectively as OPEC-plus, have come together to slash output by 9.7 million barrels per day over May to June, according to Reuters, which said sources told the news outlet Sunday afternoon that the "deal had been sealed."
Cuts in production could remain through April 2022, according to Reuters.
The Financial Times newspaper quoted Kuwait’s oil minister, Khaled Ali Al-Fadhel, as saying on Sunday that there had been “relentless efforts and continuous talks since the dawn of Friday.”
The deal could help the oil industry as energy demands have been crushed since the lockdowns, shut downs and business closures had begun over the Covid-19 outbreak.