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The group will cut 10 million barrels per day in May and June, 8 million barrels per day from July through the end of the year, and 6 million barrels per day beginning in January 2021 and extending through April 2022.
The agreement was not contingent on nations outside of OPEC+ curbing production, which some had suggested might be a stipulation for Saudi Arabia and Russia to scale back production.
Despite the record size of the cut, oil prices moved lower on Thursday as investors feared it would still not be enough to combat the unprecedented demand loss from the coronavirus.
"Although 10 million bpd will help the market on the short term to not fill up storage, it is a disappointing development for many, who still realize the size of the oil oversupply," said Rystad Energy's head of oil markets Bjornar Tonhaugen.
U.S. West Texas Intermediate fell 9.29%, or $2.33, to settle at $22.76 per barrel. Earlier in the session, the contract had been up more than 12% trade at a session high of $28.36. International benchmark Brent crude slipped 4.14% to settle at $31.48, after earlier hitting a high of $36.40.
"Covid-19 is an unseen beast that seems to be impacting everything in its path," OPEC Secretary General Mohammad Barkindo said at the meeting. "For the oil market, it has completely up-ended market supply and demand fundamentals since we last met on 6 March," he added.
Earlier WTI spiked more than 12% on reports that Saudi Arabia and Russia were discussing cuts that could take a record 20 million barrels per day of global production offline.
Ahead of the meeting, the Street had been watching for cuts in the 10 million to 15 million barrels per day range after President Donald Trump said he had spoken to Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman and expected them to announce a deal of that size.
"We're optimistic that they'll reach an agreement between the Saudis and Russians in an effort to stabilize the markets," U.S. Energy Secretary Dan Brouillette said Thursday on CNBC's Squawk Box ahead of the meeting. "I think they can easily get to 10 million, perhaps even higher, and certainly higher if you include the other nations who produce oil, nations like Canada and Brazil and others. Easily, easily done," he added.
The meeting comes as relations between some of the world's largest producers has grown fraught, and Saudi Arabia and Russia had previously signaled that any cut would need to include action from non-OPEC nations such as the U.S., Canada and Norway.
"OPEC+ is trying mightily to cobble together a sizable production cut, and they are in full spin mode to try and rally prices," Kilduff told CNBC. The "teleconference will be a make-or-break moment for the oil market."
Energy ministers from the Group of 20 major economies will convene for their own extraordinary meeting on Friday, in which Energy Secretary Dan Brouillette will participate.
The G-20 presidency said Tuesday that the meeting would be held "to foster global dialogue and cooperation to ensure stable energy markets and enable a stronger global economy."
When it comes to U.S. energy companies, Trump has commented that market forces will prevail, and on Wednesday said that producers have "already cut way back." Brouillette echoed this on Thursday, telling CNBC that the "demand downturn has led to production cuts in the United States of about 2 million barrels per day thought the reminder of 2020."
Oil prices crater
At OPEC's last meeting in early March, de facto leader Saudi Arabia proposed cuts of 1.5 million barrels per day to combat falling demand. But OPEC-ally Russia rejected the proposal, sparking a price war between the two powerhouse producers. Saudi Arabia slashed its oil prices to gain market share, and also ramped up production to record levels above 12 million barrels per day.
Since early March, the outlook for oil has changed drastically as the pandemic spread, with much of the world now staying home. Oil prices sank to their lowest level in nearly two decades. WTI and Brent both fell more than 50% in March for their worst month on record. The first quarter was also the worst in history, with WTI shedding 66%, while Brent fell 65%.
Amid the decline, which has pressured highly-leveraged U.S. oil companies, President Donald Trump sought to broker a deal between Saudi Arabia and Russia. On April 2 Trump told CNBC that he had spoken to Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman and that he expected them to announce a record production cut.
American drillers are still pumping near record levels as the world is coming to the edge of its ability to store oil. The U.S. oil industry is divided on whether it could or should contribute to production cuts in an effort to stabilize prices.
The American Petroleum Industry opposes cuts, saying such a move would harm the U.S. industry. In Texas, however, Ryan Sitton, one of the three members of the Texas Railroad Commission, has said that the state would consider participating in such a deal.
Pippa is a markets reporter for CNBC, focused on all things energy. She was previously a producer on CNBC's daily 12pm show Halftime Report.Pippa graduated from Princeton University with a degree in Classics. Follow her on Twitter @PippaStevens13
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