OPEC+ has agreed to cut production, which should buy the market some time before demand recovers.
Geopolitical pressures brings Saudi Arabia and Russia back to the table. Production cuts could be as much as 15 million barrels a day.
Gas stockpiles are up while U.S. demand drops to a 20-year low. EIA released its short-term energy outlook for April and lowered U.S. production forecast.
While global oil diplomacy is crazier than ever, price pressure but, more importantly, diplomatic pressure will force action.
Saudi Arabia and Russia may agree to one of the most significant global oil production cuts ever, about 10-15% of the global supply. The market responded with the biggest percentage price gain in history.
China and the U.S. are changing the dynamic in what IEA calls the worst oil shock in history.
The only thing keeping oil and gas from totally crumbling is global economic stimulus, and the expectations that cutbacks in spending and production could reverse the coming massive oil glut.
Is it crazy if you are a major oil producer to create a situation where the price of your product would have the worst quarter in history? A time where oil demand destruction is at the highest level in the history of the globe. The answer is yes!
Oil prices are losing hope that demand will recover anytime soon after President Trump extended federal social distancing guidelines until April 30th. The report drove oil to a 17-year low.
Russia has a plan to stabilize global oil prices. Create a new, bigger, and better OPEC. This comes as pressure mounts in Russia and Saudi Arabia to call off the price war that put more pain in a global economy already suffering from the historic economic hit.