InvestorQ : Has the OPEC been able to agree with Russia on the extent of crude oil supply cuts?
Angel dcosta made post

Has the OPEC been able to agree with Russia on the extent of crude oil supply cuts?

Answer
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Anamika Sodhani answered.
3 months ago


OPEC, Russia and other like minded nations like Mexico, Kazakhstan and others agreed to extend oil production cuts of 10% until the end of July 2020. It has also called upon Nigeria and Iraq, which had been exempted in the past, to contribute to supply cuts. After cutting 9.7 million bpd in May, this will be sustained in June and July also. Brent has already bounced from $16/bbl to $40/bbl in the last one month on the back of improved demand conditions and supply cuts. The idea is to gradually take crude oil above $50/bbl which will make the oil business a lot more viable and sustainable for the oil extractors. The actual impact will be known once the demand picks up with the opening up of economies.