On April 10, a day after OPEC++ reached a commitment to cut 10 million bpd of oil production in both May and June, oil prices declined to $32.02 per barrel.
According to oilprice.com, “analysts say cuts are too little, too late. Other analysts also said the risk is to the downside. ‘These cuts are not enough to prevent massive stockbuilds in May, let alone April,’ JBC Energy wrote in a note.”
The coronavirus’ negative impact on travel and the global economy makes OPEC++ a relatively toothless platform as they find themselves in untested circumstances with no planned exit strategy. The price of oil will remain low in the near future, which will hit the Central Asian dictators particularly hard.
Courtesy: Oilprice.com
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