We now expect OPEC+ to agree to a production cut of 11 million b/d for May and June from a baseline of about 11.3 million barrels per day. The baseline was the remaining issue that was resolved today between Saudi Arabia and Russia.
Each producer in the OPEC+ group will cut about 20 percent as contributions for the cut.
Hedgeye had forecasted an OPEC+ cut of about 10 million b/d for the 2nd quarter.
Saudi Arabia had wanted cuts of 15 million b/d while Russia was advocating for 10 million b/d. The cuts appear to be in addition to any market cuts that the US or Canada will contribute from low prices, low demand and lack of storage.
See twitter feed this morning from Joe McMonigle with some excerpts from the data presentation to OPEC delegates and follow @joemcmonigle for live updates during the day.
