- Trump Halts Oil Slide, Says OPEC+ Plans to Cut 20mbpd
President Trump once again has halted global oil prices from further decline after saying OPEC+ plans to cut 20 million barrels per day and not the 10 million barrels per day widely reported.
The President, in his usual tweets, said if anything near the stated volume happens, the world will get back to business.
Trump said: “Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported. If anything near this happens, and the World gets back to business from the Covid 19 disaster, the Energy Industry will be strong again, far faster than currently anticipated.”
The uncertainty in the tweet, ‘if this happens’, points to an unknown outcome considering G20 energy ministers have not agreed to contribute despite holding a virtual meeting on Friday, a day after OPEC+ held a meeting. OPEC+, the US, Brazil and Canada on Sunday announced a combined 13.4 million barrels per day production cut yet global oil prices plunged further from $36.37 per barrel recorded on Friday to $31 on Monday.
Traders have said the top producers need deeper cut to call the bottom of oil prices. They put oil surplus at over 35 million barrels per day, saying either a COVID-19 cure or deeper production cuts can stop the current slide in global oil prices.
“Thank you to all of those who worked with me on getting this very big business back on track, in particular Russia and Saudi Arabia,” President Trump stated in one of his tweets.
Oil price, Brent crude oil against which Nigerian oil is measured, inched higher to $31.85 per barrel. The candlestick on the daily chart shows Doji, indecision.
