President Donald Trump on Sunday praised a deal among the world's top oil producers to cut global petroleum output, saying it would save jobs in the U.S. energy industry.
"This will save hundreds of thousands of energy jobs in the United States," Trump said, adding that he thanked and congratulated Russian President Vladimir Putin and Saudi Arabia's King Salman.
"I just spoke to them... Great deal for all," Trump said.
OPEC and allies led by Russia agreed on Sunday to cut oil output by a record amount - representing around 10% of global supply - to support oil prices amid the coronavirus pandemic, and sources said effective cuts could amount to as much as 20%.
Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs.
The group, known as OPEC+, said it had agreed to reduce output by 9.7 million barrels per day (bpd) for May-June, after four days of marathon talks and following pressure from U.S. President Donald Trump to arrest the price decline.
In the biggest oil output cut ever, exceeding four times the cuts approves during the 2008 financial crisis, the countries will keep gradually decreasing curbs on production in place for two years until April 2022.
OPEC+ has said it wanted producers outside the group, such as the United States, Canada, Brazil and Norway, to cut a further 5% or 5 million bpd.
Three OPEC+ sources said effective oil output cuts could be close to 20 million bpd if contributions from non-members, steeper voluntary cuts by some OPEC+ members and strategic stocks purchases were taken into account.
Gulf members of the Organization of the Petroleum Exporting Countries would be cutting output more steeply than agreed, OPEC+ sources said.
The sources said the International Energy Agency (IEA) would announce purchases into stocks by its members on Monday. The IEA did not immediately respond to a request for comment.
© 2021 Thomson/Reuters. All rights reserved.