Let’s be honest: The so-called OPEC++ agreement to cut 10 million barrels of oil per day from global crude oil supply is a half-measure. Really, with Rystad Energy reporting that demand for oil will drop by 27 million bopd from January 1 levels during April, calling it a half-measure is an exaggeration.
But here at least are the parameters of the agreement that are being reported Friday morning:
– OPEC++ (the OPEC nations plus Russia, Mexico, Canada, Brazil and several others) agree to cut 10 million barrels per day of exports from April through July;
– The cuts drop to 8 million bopd from August 1 through December 31;
– The cuts further fall to 6 million bopd beginning January 1, to continue for the next 16 months;
– The cuts include no formal contribution from the U.S. oil and gas industry.
President Donald Trump will discuss his views of America’s contribution to a reduction in global supply in a call involving the Group of 20 – or G20 – on Friday.