OPEC+ oil deal is short-term band aid, better long-term bet: Russell

France Nouvelles Nouvelles

OPEC+ oil deal is short-term band aid, better long-term bet: Russell
France Dernières Nouvelles,France Actualités
  • 📰 Reuters
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

The agreement to cut global crude oil output, reached amid high drama over the Easter weekend, appears effectively to be in two parts. A short-term agreement that's probably not enough, and a longer-term plan that has a much better chance of success.

LAUNCESTON, Australia - The agreement to cut global crude oil output, reached amid high drama over the Easter weekend, appears effectively to be in two parts. A short-term agreement that’s probably not enough, and a longer-term plan that has a much better chance of success.

While there is little doubt the deal is significant, it’s worth noting it was reached in response to a global economic crisis unprecedented in its scale and in the speed at which it has hit the world economy. This may be somewhat optimistic because if the output deal has the desired effect of stabilising and even increasing prices, the incentive for the other producers, who operate largely in free-market economies, to trim output is lessened.

The main point, though, is that even if the optimistic view of a total cut of 20 million bpd comes to fruition, it’s still not enough to offset the demand shock from the coronavirus. The formal 9.7 million-bpd cut is also only for May and June, a move that assumes a fairly optimistic view on how quickly countries will emerge from economic hibernation.

If OPEC+ can actually deliver on the deal, this will make a balanced market more likely to appear once the coronavirus pandemic is contained.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

Reuters /  🏆 2. in US

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Oil prices are flat after OPEC and allies agree to historic production cutOil prices are flat after OPEC and allies agree to historic production cutOil prices were flat in overnight trading after OPEC and its allies agreed to a historic deal to cut production by a record 9.7 million barrels per day.
Lire la suite »

OPEC, oil nations agree to nearly 10 million barrel cutOPEC, oil nations agree to nearly 10 million barrel cutOPEC, Russia and other oil-producing nations finalized an unprecedented production cut of nearly 10 million barrels in hopes of boosting crashing prices
Lire la suite »

As Demand For Oil Dries Up, OPEC And Allies Agree To Historic Cuts In OutputAs Demand For Oil Dries Up, OPEC And Allies Agree To Historic Cuts In OutputSaudi Arabia and Russia have reached a deal with other oil-producing nations to cut output by a record-setting 9.7 million barrels a day. But analysts say it will likely be dwarfed by the size of pandemic-driven demand loss.
Lire la suite »

Oil climbs more than $1/barrel as OPEC, allied producers agree record output cutOil climbs more than $1/barrel as OPEC, allied producers agree record output cutOil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.
Lire la suite »



Render Time: 2025-03-17 15:17:54