Home Energy OPEC agrees oil production cut of 1.5 million bpd

OPEC agrees oil production cut of 1.5 million bpd

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THUR, MARCH 05 2020-theG&BJournal- The Members of the Organisation of the Petroleum Exporting Countries (OPEC) appear to have reached a deal to cut global supply by as much 1.5 million barrels per day, but energy experts believe that the deal will be done when and if Russia assents. OPEC is due to meet with members of OPEC+ (non-OPEC members) Friday to discuss details, with focus firmly on Russia and Saudi Arabia alliance. Both countries are known to fret over further cuts.

The Ministers are meeting in Vienna, Austria (March 5-6) to agree on a deeper round of oil production cuts to offset the demand impact from the Coronavirus. Reports say it is not clear if Russia is involved in cutting the latest deal.

Oil prices reacted cautiously to the news. OPEC basket rose 1.94% to $52.65. Crude oil futures rose 0.5% to $46.97 a barrel. Brent crude gained 0.7% to $50.72 while Bonny Light traded at $52.42.

OPEC revised downward its demand outlook for first and second quarters. Global oil demand growth in 2020 is now forecast to 0.48 mb/d, down from 1.1 mb/d in December 2019.

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