Coronavirus OPEC’s agreement to cut global oil output by 9.7 million barrels

Coronavirus OPEC’s agreement to cut global oil output by 9.7 million barrels a day in May and June, finalised on Sunday, buys Nigeria a little time.
The cuts, equivalent to close to 10% of world output, follow failure to agree to reductions in March, which prompted an oil price collapse. Nigeria’s petroleum resources minister Timipre Marlin Sylva now says he expects oil price to quickly rebound by $15 per barrel.
But any optimism on the part of oil producers that there will be a lasting détente between Russians and Saudi Arabia—even if they’re able to convince other major suppliers like Mexico to also cut production—will “likely prove myopic”, says Harry Broadman, chair of the emerging markets practice at Berkeley Research Group LLC in Washington.
“The simple fact is there has been a huge structural downshift in oil demand globally because of the COVID crisis. In such a setting—one that hasn’t existed for a generation—there will be blood on the floor for all oil producers.”
Read full news below :
https://davidotokiblog..com/2020/04/coronavirus-opecs-agreement-to-cut.html