Oil Deal Expectations After OPEC + Meeting

Oil Deal Expectations After OPEC + Meeting

Oil markets faced their biggest moments of uncertainty in decades ahead of a virtual OPEC + meeting on Thursday that was postponed due to persistent disagreements between some leading member states and the alliance of non - OPEC producers. The agenda will be whether countries will agree to jointly cut crude production to save immersion prices at a time when no one is buying oil and where the world is going to set. "The stalemate is not an option for any of the parties," Texas-based analytics company Quantum Reservoir Impact and Saudi Aramco's ex-reservoir management head Nansen Saleri said on Tuesday over the phone. “It's only a matter of time until an agreement is reached,” he said, “it is a matter of weeks, unlike months.” "It is in the interests of everyone to over-supply the world," said Saleri. "There's something in common here, and it hurts everyone." Oil prices have fallen by more than 50% to date, with global benchmark Brent crude oil at $ 31.94 a barrel on Wednesday and US West Texas Intermediate at $ 24.18 a barrel. The OPEC + meeting will be held through video conferencing as a precautionary measure in the middle of the coronavirus pandemic, with the exception of the world's major economies, eliminating global oil demand. At the same time, leading manufacturers Saudi Arabia and Russia are dealing with a price war by increasing or maintaining production to increase their market share, while US shale companies are pumping at record levels. Oil prices have been at their lowest in almost two decades, creating large-scale investment spending and business cuts in the US shale basin, where high-cost operations are no longer economically viable. However, he said that it will be painful to continue the market share strategies of Russia and Saudi Arabia. “All Saudi Arabian and Russian economies are affected by oil prices.” If Saudi Arabia and Russia are going to cut their output - as President Donald Trump says - they want to see the US play a role in the cut. The tense dynamics of the great egos and foreign relations between the world's heavyweight energy players will now determine the future of the entire global oil industry. This means it no longer affects not only OPEC + manufacturers but also the countries of the USA, Canada, Norway, and Brazil. In the USA, production levels are decided by individual companies, which makes it extremely difficult for a central cutting effort. But even American executives are now calling for industry cuts in line with market forces.