OPEC chief says oil market responding well to record OPEC+ cut

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

OPEC is encouraged by a rally in oil prices and strong adherence to its latest output cut, its secretary general said, although sources say the group has not ruled out further steps to support the market.

The Organization of the Petroleum Exporting Countries,Russia and other allies, a group known as OPEC+, are cuttingsupply by a record 9.7 million barrels per day (bpd) from May 1 to offset a slump in prices and demand caused by the coronavirusoutbreak.

Oil prices <LCOc1> have more than doubled since hitting a 21-year low below $16 in April. So far in May, OPEC+ has cut oil exports by about 6 million bpd, according to two companies that track the flows, suggesting a strong start in complying with the deal.

“The oil markets have responded positively to the historic agreement, as well as its robust implementation by participating countries,” Mohammad Barkindo, OPEC’s secretary general, told Reuters.

“All in all there is a gradual but steady convergence of the fundamentals of supply and demand.”

An OPEC delegate, speaking off the record, was also upbeat. But although prices have rallied, they are still far below the budget needs of many countries.

“This is a good sign for prices,” the delegate said of the export cuts. “We are safe, but need more time to be more sure – maybe until July or August.”

OPEC+ meets virtually on June 10, when it will have a full month’s data on compliance, to review the agreement.

Sources have said OPEC+ may keep the current level of supply reduction after June, rather than scaling it back from July as currently agreed.

“There are good indications on compliance, and we have seen prices improving lately,” said another OPEC delegate. “But the market is still volatile, let’s wait.”

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Zoom CEO apologizes for having ‘fallen short’ on privacy and security

The founder and CEO of Zoom has apologized to the video conferencing app's millions of users after coming under fire for a host of...

Fashion stars are earning up to $50,000 per post

His wherein male land form. Own whose they're gathered is let male kind from. A you'll life waters evening fly female won't...

‘Selfish!’ North Korea calls out President Trump for saying he received a ‘nice note’ from Kim Jong un

President Trump said during Saturday’s White House press briefing that he “received a nice note” from North Korean leader Kim Jong un and that...

First superconducting nickel oxide material detected

There is talk of 'the first superconducting NiO material' in the press release published on the SLAC website, Stanford University's US laboratory. According to the...

The hidden struggles America’s disabled are facing during the coronavirus pandemic

KEY POINTS Millions of Americans who suffer from hearing and vision loss are struggling to access critical health-care services, including Covid-19 testing. The CDC...
Home of Science
Follow me