(WoodMac, 9.Apr.2020) — As OPEC+ agreed at cut of 10 million b/d, WoodMac’s Ann-Louise Hittle said: “A 10 million b/d cut would be very supportive of price over the second quarter.
“Even a 5 million b/d reduction would see oil prices in the low $30s. It would ease pressure on storage and stem the steep price collapse we saw in March.”
She added: “A 10 million b/d reduction may seem small compared with some very high demand loss estimates, but if the curbs are implemented? It would slow the build-up in storage and avoid the surplus of supply over the second quarter, when the Covid-19 shutdowns are the extensive and demand lowest.”
***
