On Sunday evening the Dow Jones Futures went spiraling downward as OPEC+ production deal goes into effect. As the deal comes it also tanks Crude oil, erasing all the gains it has previously withheld.
Russia and other officials including OPEC has come to an agreement to cut crude oil production. The statistics are that 9.7 million barrels has been cut from production versus the 10 million barrels per day with Mexico cutting 100,00 barrels per day and may cut an additional 400,000 barrels to be in agreement with the original OPEC+ production cut.
In addition, the United States will cut an extra 300,000 barrels per day to make up the difference. Oil prices have likely decline because of not reaching an agreement before the market opened.
While it’s not clear whether this cut will satisfy the markets, crude oil which gained 12% has had it’s gains erased and is now down 9%.