OPEC Agrees To A Massive Cut In Oil Production Due To The Coronavirus Outbreak

Reuters: OPEC backs extra 1.5 million bpd output cut if Russia joins in: sources

VIENNA (Reuters) - OPEC agreed on Thursday to cut output by an extra 1.5 million barrels per day (bpd) in the second quarter of 2020 to support prices amid an outbreak of coronavirus but made it conditional on Russia joining in, two OPEC sources said.

Saudi Arabia had suggested OPEC and its allies, including Russia, cut up to 1.5 million barrels per day (bpd) for the second quarter of 2020 while keeping existing cuts of 2.1 million bpd, which expire this month, in place until the end of 2020.

But Riyadh, the biggest producer in the Organization of the Petroleum Exporting Countries, and other members of the group have yet to win Russian support for such a deal. So far, Moscow has indicated it would back an extension but not a deeper cut.

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WNU Editor: This cut in oil production will not be enough. The world's economy is slowly shutting down due to the coronavirus outbreak. Quarantines are becoming the norm, and people are staying home. And if the US economy slow downs because of this outbreak, which I predict it will, expect even more pressure on oil prices.

Update: I agree with this prediction .... A $30 Oil Price Is the Real Virus Threat to OPEC (Bloomberg).

More News On OPEC Agreeing To A Massive Cut In Oil Production Due To The Coronavirus Outbreak

OPEC Mulls Big Production Cut of 1.5 Million Barrels a Day -- USA Today/AP
OPEC agrees on massive oil supply cut to offset virus impact; awaits Russia’s approval -- CNBC
OPEC Agrees To 1.5MM Barrel Output Cut, But Fails To Obtain Critical Russian Backing -- Zero Hedge
OPEC agrees biggest oil production cut since 2008 financial crisis, but only if Russia joins -- RT

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