OPEC, Russia and other oil-producing nations agreed on Sunday to cut output by a record amount, somewhere around 10 percent of global supply, to support oil prices amid the coronavirus pandemic.
OPEC+ members finally agreed to reduce output by 9.7 million barrels per day (bpd) for May-June, after four days of talks and pressure from President Donald Trump to end the oil spat.
In what is believed to be the biggest oil output cut in history, the countries will keep gradually decreasing curbs on production in place for the next two years.
Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, and has driven down US shale industry hopes which is more vulnerable to low prices due to its higher costs.
OPEC+ initially said it wanted non-member producers such as the United States, Canada, Brazil and Norway, to cut a further 5 percent or five million barrels per day.
Both Canada and Norway had some forward willingness to accept the cut deal and the United States, where legislation makes it hard to act in tandem with cartels such as OPEC, said its output would fall on its own this year due to low prices.
The signing of the OPEC+ deal had been delayed since Thursday, however, after Mexico baulked at the production cuts it was asked to make.
Mexican President Andres Manuel Lopez Obrador released a statement on Friday saying that Trump had offered to make extra US cuts on his behalf.
Trump said Washington would help Mexico by picking up "some of the slack" and would worry about being being reimbursed later. President Lopez Obrador did indicate exactly how this plan will work.
Global oil demand is estimated to have fallen by a third as more than three billion people are locked down in their homes due to the coronavirus outbreak.
A 15 percent cut in supply might not be enough to arrest the price decline, banks Goldman Sachs and UBS predicted last week, saying Brent prices would fall back to $20 per barrel from $32 at the moment and $70 at the start of the year.