In oil market terms, there’s only one thing that matters today: the world’s largest oil producers are meeting to try to agree to reduce output and rescue crude markets from a catastrophic pandemic-driven collapse. A solution moved closer within reach after Russia signalled it’s ready to reduce output by 1.6 million barrels a day, or about 15%.
Since the start of the year oil has lost half of its value and oil demand is forecast to slide as much as 30% in the current crisis.
The two questions that need to be answered are: Will OPEC be able to come together, after falling out not too long ago, and bring in the US into an agreement on a worldwide production cut?
If this is done, will this actually be enough to make any sort of dent in to colossal drop in demand that has occurred due to the Coronavirus outbreak?
We hypothesize at ‘probably’ and ‘not really’ as the two answers to those. Let’s wait and see what the day brings us.