OPEC and allies agree to cut global oil output by 9.7 million barrels per day in May and June

After four days of negotiations, OPEC and allies, on Sunday, agreed to cut global oil output by 9.7 million barrels per day in May and June.

A series of interventions by US President Donald Trump pressured the group, known as OPEC+ in taking the decision to reduce global crude output by roughly 10%. 

On Sunday, Trump praised the deal and tweeted:

The big Oil Deal with OPEC Plus is done. This will save hundreds of thousand 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. Greal deal for all!

Upon announcement of the agreement, oil prices spiked higher more than a $1 per barrel in Monday trading, but gains were capped amid concern that it would not be enough to head off oversupply with the Coronavirus pandemic hammering demand.

There has been an oversupply of oil firstly, due to the dispute between Saudi Arabia and Russia, which triggered the price war and secondly, the Coronavirus pandemic which has killed more than 100,000 people globally and kept businesses and Governments on lockdown. Except this pandemic is curbed, the demand for oil would be very low.