Replay | Energy Policy: Flash Call On OPEC Oil Prices
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Former OPEC President and former Algerian energy minister Chakib Khelil and Hedgeye's Energy Analyst Joe McMonigle, who just returned Vienna, did a FLASH conference call for clients Monday moderated by Hedgeye Director of Research Daryl Jones to discuss OPEC's recent failure to reach a deal with Russia on deepening and extending production cuts through 2020 to deal with demand destruction from coronavirus.
OPEC was unified in wanting to make deeper production cuts of 1.5 million b/d through the rest of 2020 on top of the 1.7 million b/d cuts made in December and that expire on March 31. But the leader of the OPEC+ group, Russia, was satisfied with current price levels and opposed the plan for deeper cuts.
On Saturday Joe published a client notes recaping the developments at Friday's OPEC+ meeting. Here is the link to that note.
In today's call, Chakib discussed where OPEC goes from here and his view of oil markets for the rest of the year. Also, Joe provided a behind the scene's view of the meeting and discussions as well as preview potential prospects for a deal by March 31 deadline as well as next steps with a scheduled OPEC JTC meeting in mid-March and the next OPEC meeting on June 9.