• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 10 mins In a Nutshell...
  • 18 hours Is OilPrice a cover for Green Propganda
  • 58 mins Putin Paid Militants to Kill US Troops
  • 4 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 22 hours Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 5 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 21 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 49 mins Why Wind is pitiful for most regions on earth
  • 6 hours Happy 4th of July!
  • 4 hours Apology Accepted!
  • 1 day The Political Genius of Donald Trump
  • 2 days Why Oil could hit $100
  • 2 days Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 2 days Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
Russia Expects OPEC+ To Ease Cuts Next Month

Russia Expects OPEC+ To Ease Cuts Next Month

Russia’s Energy Minister Novak said…

Supermajors Are Flocking To This Booming Oil Frontier

Supermajors Are Flocking To This Booming Oil Frontier

Supermajors are flocking to this…

30% Of U.S. Shale Drillers Could Go Under

30% Of U.S. Shale Drillers Could Go Under

U.S. shale was hit hard…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudi Arabia Aims For Additional Cuts As Oil Plunges Below $50

Faced with a slump in demand and plunging oil prices, OPEC’s top producer and de facto leader Saudi Arabia is asking members of the OPEC+ group to consider an additional collective cut of 1 million bpd when the coalition meets in Vienna next week, Financial Times reports, citing five people with knowledge of the talks.

The Saudi proposal has been discussed this week during a visit to Saudi Arabia of OPEC’s Secretary General Mohammad Barkindo, the FT reports.

The 1-million-bpd collective cut would be 400,000 bpd higher than an initial proposal of a technical panel of the OPEC+ group which proposed earlier this month that the coalition reduce production in Q2 by 600,000 bpd to counter the slump in oil demand caused by the coronavirus outbreak.  

Within OPEC, several of the key members are leaning toward a deeper cut, four sources familiar with the talks told Reuters on Friday.  

The OPEC+ group’s joint technical committee (JTC) issued a proposal on February 8 that the producers extend the cuts as-is until the end of 2020 and deepen those cuts in the second quarter in response to the fact that the coronavirus “has had a negative impact on oil demand and oil markets.”

After that proposal, however, oil prices have slumped as the coronavirus spread fast outside China to Europe and the Middle East, and the equity and oil markets saw massive sell-offs. In just a week, oil prices lost more than $8 a barrel, and Brent Crude was trading at $50 early on Friday.

Related: 

The demand destruction and the oil price rout make deeper cuts more urgent for OPEC’s leader Saudi Arabia, which can’t be happy with $50 oil considering that it needs $80 per barrel to balance its budget.

Meanwhile, Russia continues to refuse to announce its position regarding deeper cuts by the OPEC+ coalition, but admitted that the coronavirus outbreak could lead to additional downward revisions to the global oil demand growth outlook for 2020.

In view of the price slide and continued fears over global economic slowdown and further demand loss, oil prices could further slump if OPEC+ doesn’t act decisively next week.

“We believe the market will be disappointed with anything that falls short of the JTC recommendation,” Warren Patterson, ING’s Head of Commodities Strategy, said on Friday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News