From President Donald Trump on Twitter:
‘Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported. If anything near this happens, and the World gets back to business from the Covid 19 …’
Oil production is reportedly getting ready to be slashed internationally as noted by President Trump, and MarketWatch:
President Donald Trump on Monday via Twitter is saying that a historic weekend deal struck between OPEC and some of the biggest oil producers on the planet could be more substantial than what has been announced.
The president’s tweet suggests that a global output cut by 9.7 million barrels a day struck by the Organization of the Petroleum Exporting Countries, Russia and the U.S. could be doubled. That 20 million figure would be closer to what commodity experts say is required to sop up excess crude swirling in the market and address a shock to demand caused by the COVID-19 pandemic.
The weekend deal ends a month-long price war between Saudi Arabia and Russia that flooded the world with unneeded crude and amplified a meltdown in oil prices, but, according to critics, would only go partway toward stabilizing oil prices, which have seen a double-whammy from the Saudi-Russian price war and the pandemic.
Read it all here. And it’s not just in Saudi Arabia and Russia where they’re looking at cutting production – they’re doing it in Texas as well:
There’s plenty of oil to go around these days and lower prices at the pump, thanks to the shrinking demand caused by the coronavirus outbreak and Saudi Arabia flooding the market with cheap oil.
Good news for drivers, but bad news for Texas oil producers.
That’s why the Railroad Commission of Texas – the state agency that regulates oil and gas production – is looking into possibly forcing the industry in Texas to cut back production in order to reduce oil inventories. That would lower the surplus and raise income for drillers.
This is actually good .. will allow these firms to take a breath and shore-up their operations. Hopefully they’ll get to many of those projects/issues that they’ve been putting off for a time just like this one ..