Sunday 5 April 2020

Oil News, OPEC+ Latest: Negotiations Over Crude Slump - Bloomberg

Oil News, OPEC+ Latest: Negotiations Over Crude Slump - Bloomberg:

Saudi Arabia, Russia and other oil large producers are racing to negotiate a deal to stem the historic price rout, as diplomats pressed to get the U.S. to join the coalition.

“President Putin and the Russian side in general are keen to engage in constructive negotiations, which is the only way to stabilize the international energy market,” Kremlin spokesman Dmitry Peskov said in a pre-recorded interview aired on state TV on Sunday. Failure would mean a collapse in prices.

The talks still face significant obstacles: a meeting of producers from OPEC+ and beyond -- delayed from Monday -- is only tentatively scheduled for Thursday as negotiators work against the clock. The aim, first revealed by President Donald Trump, is to cut oil production by about 10% -- the biggest ever coordinated reduction.

Oil has fallen 50% this year, as the economic effects of the pandemic have knocked out about a third of global demand. The price crash is so dramatic that it’s threatening the budgets and political stability of oil-dependent nations, the existence of U.S. shale producers, and jobs in an industry already in turmoil. Even the International Energy Agency, which represents nations that consume oil, is calling for action.

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