Cookie Notice. IHS Markit forecasted a drop in second quarter global oil demand of 16.4 million barrels a day from a year earlier, and estimated April’s oil demand decline at around 20 million barrels per day, citing “the closure of a large share of the global economy” due to the COVID-19 pandemic, according to a report issued on March 31. Myra P. Saefong, assistant global markets editor, has covered the commodities sector for MarketWatch for 20 years. The 12 th OPEC and non-OPEC Ministerial Meeting WTI crude futures for May delivery, which are more tightly connected to domestic gas prices, were marked $1.42 lower at  $26.92 per barrel, after trading below $20 for the first time in more than 18 years on Monday of last week. The United States Department of Labor will release its weekly jobless claims report at 8:30 a.m. today in Washington. “The virtual nature of the meeting is unconventional, but is unlikely to be a hindrance,” said Manish Raj, chief financial officer at Velandera Energy, who believes that the group has a pre-planned agreement in place. He tells VOA that he thinks both Russia and Saudi Arabia have reached a stalemate in their game of double-or-nothing and that each side has come out a loser. Expert insights, analysis and smart data help you cut through the noise to spot trends, Read: Oil companies cut production, bracing for ‘lower for longer’ crude prices. 1 December 2020. The meeting … By using this site you agree to the “If the cartel fails to secure a meaningful deal that ends the current price war, oil could end up tumbling back to levels not seen in 17 years around $20,” said Lukman Otunuga, senior research analyst at FXTM. The OPCW said it will be up to the U.N. secretary-general and international community to “take any further action they deem appropriate and necessary.”. Riyadh will also host a virtual meeting Friday with energy ministers from the Group of 20 nations that represent the world’s most powerful economies. He sees a pre-planned “baseline” for OPEC’s discussion to be for cuts of 8 million to 10 million barrels per day over 90 days, with the meeting likely focused on “fine tuning the amount and allocating the amount to each partner.”. © 2020 TheStreet, Inc. All rights reserved. She has spent the bulk of her years at the company writing the daily Futures Movers and Metals Stocks columns and has been writing the weekly Commodities Corner column since 2005. Subscriber Agreement & Terms of Use, Will the agreement work? It was at a near record level of 13 million barrels a day a week earlier. Share via Email. The cease-fire will last two weeks and could be extended, coalition spokesman Col. Turki al-Malki said. CAIRO - Russia and Saudi Arabia meet with other countries Thursday on cutting oil production while they continue a price war that has driven down U.S. gasoline and oil prices. All quotes are in local exchange time. In a sign of the times, the Organization of the Petroleum Exporting Countries and allied oil producers will hold a virtual meeting Thursday to make a decision on global crude production that could make or break the oil market. OPEC Calls for Big Production Cut, But Will Russia Agree. If the U.S. imposes an import tax on oil, that will “deal a blow to OPEC+, as domestic producers will enjoy a price premium, while OPEC+ producers take a hit,” he said. Its success will based on the ability to reach out to non-OPEC+ members such as the US, Canada and Norway.". By Edward Yeranian. Trump prodded the world's two biggest producers last week with a Tweet that suggested the pair would make massive cuts to their daily production totals in an effort to thwart an ongoing collapse in crude prices that has decimated the global energy industry. Trump said Sunday that he might consider using tariffs to halt the slide of domestic U.S. oil prices. Am I using it for oil? In a report Wednesday, IHS Markit said the “collapse” in world oil demand is driving large spending cuts among oil companies around the world, with the largest in percentage terms, so far, coming from North American exploration and production companies. Global benchmark June Brent crude Join over 300,000 Finance professionals who already subscribe to the FT. 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