OPEC outlines details of historic cuts after extraordinary meeting
by ChemOrbis Editorial Team - content@chemorbis.com
The Organization of the Petroleum Exporting Countries (OPEC) revealed the details of the overall crude oil production cuts in a statement published on April 9.
The world’s leading oil nations tentatively agreed to cut production in a meeting held via webinar on April 9, in an effort aimed at stabilizing the volatile oil market.
In the meeting, the OPEC and non-OPEC oil producing countries agreed to cut their overall crude oil production by 10 million b/d, starting on May 1, 2020. This initial period of downward adjustment is expected to conclude on June 30, 2020.
For the following six months, the output cut will be 8 million b/d. It will be followed by a 6 million b/d adjustment for a period of 16 months, from January 1, 2021, to April 30, 2022.
However, the statement said that those measures were conditional on the consent of Mexico, which refused to agree on a 10 million b/d cut.
On April 9, the US benchmark West Texas Intermediate (WTI) crude oil futures fell $2.33 to settle at $22.76/barrel and Brent crude fell $1.36 to settle at $31.48/barrel. Earlier in the intraday session, the WTI futures rose more than 12% to trade at $28.36/barrel while Brent crude futures hit as high as $36.40/barrel amid reports that the deal could reduce output by 20 million b/d.
The world’s leading oil nations tentatively agreed to cut production in a meeting held via webinar on April 9, in an effort aimed at stabilizing the volatile oil market.
In the meeting, the OPEC and non-OPEC oil producing countries agreed to cut their overall crude oil production by 10 million b/d, starting on May 1, 2020. This initial period of downward adjustment is expected to conclude on June 30, 2020.
For the following six months, the output cut will be 8 million b/d. It will be followed by a 6 million b/d adjustment for a period of 16 months, from January 1, 2021, to April 30, 2022.
However, the statement said that those measures were conditional on the consent of Mexico, which refused to agree on a 10 million b/d cut.
On April 9, the US benchmark West Texas Intermediate (WTI) crude oil futures fell $2.33 to settle at $22.76/barrel and Brent crude fell $1.36 to settle at $31.48/barrel. Earlier in the intraday session, the WTI futures rose more than 12% to trade at $28.36/barrel while Brent crude futures hit as high as $36.40/barrel amid reports that the deal could reduce output by 20 million b/d.
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- China PP price uptrend intact after holidays despite local supply pressure
- Saudi PP, PE markets reverse course in Feb after 8 months, maintenance schedule busy in Mid-East
- Freight carriers aim to manage supply-demand balance by blanking more sailings
- PP and PE markets set to rebound from two-year lows in Europe
- PET sellers hunt for signs of market bottom in Europe
- India’s import PP, PE markets rebound in Jan after several months of declines
- Tight supplies keep Asian PVC markets bullish
- Crude oil market sentiment turns in favour of bulls
- Will European PVC take a breather from 9-month downtrend in February?
- Supply limitations bolster Feb PP and PE outlook in Turkey
