• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Could Someone Give Me Insights on the Future of Renewable Energy?
  • 9 days The United States produced more crude oil than any nation, at any time.
  • 2 hours How Far Have We Really Gotten With Alternative Energy
  • 16 hours Bankruptcy in the Industry
Geopolitical Tensions Fail to Spark Oil Price Surge

Geopolitical Tensions Fail to Spark Oil Price Surge

The fluctuating prices in response…

Iran's Attack on Israel Sparks Global Concerns of Escalation

Iran's Attack on Israel Sparks Global Concerns of Escalation

Diplomatic and political leaders worldwide…

G20 Oil Nations Agree To 3.7 Million Bpd Cut

Oil producers from G20 have agreed to reduce their combined crude oil output by 3.7 million bpd, according to Iran’s Oil Minister, Bijan Zanganeh, as quoted by IRNA.

G20 met on Friday to discuss oil production, but reports from that day revealed that the group had failed to agree on a specific number.

“To underpin global economic recovery and to safeguard our energy markets, we commit to work together to develop collaborative policy responses,” the group’s energy ministers said in an official statement. “We recognize the commitment of some producers to stabilize energy markets. We acknowledge the importance of international cooperation in ensuring the resilience of energy systems.”

This is indeed way too vague for anyone’s comfort, although some hailed the G20’s declaration of support for the OPEC+ cuts as a positive development. Such broad support for an oil production-cutting effort is unprecedented, just like the crisis that prompted it. 

Still, there is a figure for at least one G20 member: the United States.

U.S. President Trump spoke with his Mexican counterpart on Friday after Mexico refused to sign up for cuts of 400,000 bpd under the OPEC+ agreement. Following his talks with Trump, Mexico’s Andres Manuel Lopez Obrador said that the U.S. would implement cuts of 250,000 bpd to help Mexico, which will cut 100,000 bpd. Trump confirmed the agreement, saying Mexico will “reimburse” the U.S. when it can.

Besides this 250,000 bpd cut, U.S. oil production could be lowered by as much as 2 million bpd by the end of the year, Energy Secretary Dan Brouillette said at the G20 meeting, as quoted by the Financial Times.

“This is a time for all nations to seriously examine what each can do to correct the supply/demand imbalance,” Brouillette said in what could be seen as a departure from the official White House position until recently that the U.S. did not need to cut oil production on purpose because low prices would force a decline in production anyway.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News