On Thursday, OPEC agreed to a further 1.5 million bpd cut for the second quarter of 2020. The decision is still pending, awaiting on approval by the Russian government and others within OPEC+. Extra supply cuts were necessary as demand was hurt by the effects of the coronavirus and the need to support the global price in the marketplace. The new cuts will be the deepest cuts implemented since the 2008 financial crisis.
- OPEC Agrees to Major Cuts, Conditional on Russian Approval