Mexico stalled passage of a deal to cut oil output by OPEC, insisting on a smaller contribution to what would be the biggest-ever reduction by the cartel. Saudi Arabia and other members, plus Russia, have committed to rein in production by almost a quarter each to help revive a market leveled by the impact of the coronavirus pandemic on economic activity. The total proposed cut of about 10 million barrels a day in May and June would equal 10% of global supply.
Who else is watching to see what will happen? #opec #oilfield #permianbasin
Global Head of Centre of Emissions Excellence & Chief Analyst, Canadian Oil Markets, S&P Global Commodity Insights
In a move that may spare upstream producers even lower prices than the market has seen to date, but unlikely to resolve the full extent of the #COVID19 demand shock, OPEC++ agrees to a 10 million b/d production cut. #oott #oil
PhD Student | Economics [Petroleum, Energy, Finance] Economist, Policy and Risk Analyst, Adviser
If OPEC+, the U.S. and other producers can cement an agreement at the G-20 meeting, the curbs would dwarf any previous market interventions. That’s something that the physical market for crude -- trade in actual cargoes rather than futures contracts -- needs immediately, but it won’t match losses from the unprecedented slump in demand.
Principal and CEO at Chemical and Polymer Market Consultants, expertise in petrochemical markets
The (potential) agreement to cut #oil production that was just announced is a move in the right direction. It is not clear if the cut is contingent to others (read - the U.S.) agreeing to cut output as well. 10 Million Barrels production cut - Is it enough? There is no agreement on the expected impact of COVID-19 on oil demand this year. Estimates range from -2.5 MBPD (IEA) to up to -20 MBPD (various consultants & financial institutions). In reality, nobody knows. It all depends on how quickly (or simpler yet, on just how) we go from social distancing/economies in a coma to normal (define normal) economic activity. Nevertheless, -10 MBDP is better than keep pumping oil as if there is no tomorrow (or infinite storage availability, which I can assure you, there is not)... #oilwar #russia #saudiarabia #opec #covid19 #petrochemicals #shale #hydrocarbons #ngl #crudeoil #propane #propylene #ethane #ngls #energy #oilprices #oilgas #petróleo
I Help Brands Tell Their Sustainability Story | ESG & Energy Public Relations | IFRS FSA Credential Holder: Linking Sustainability and Finance
OPEC+ has agreed to cut output by 10 million barrels. However, this is more of a bandage rather than a cure for an industry that has seen demand decrease by more than 3x that (estimated 35 million barrels per day). Interesting to see if this holds after Trump's Group of 20 talks tomorrow. #oil #opec #demandshock #energy https://lnkd.in/enshyWY
In case you missed it, Trump now feels more favorable about OPEC since the US has become the number one producer in the world. I have always been a free market guy, but I see the necessity of anti-trust and other laws. Internationally there needs to be similar safeguards to prevent companies and NOCs from aggressively dumping excess products on the market to eliminate competition. I feel a monopoly like OPEC should not be the source of price control.