OPEC+ is holding an emergency meeting Sunday at 12 noon ET to finalize its big 10 million barrels per day (b/d) cut for May and June. The meeting is expected to approve Mexico’s lower commitment for 100,000 b/d and the remaining 300,000 b/d will be distributed among other members. After June, the cut total is reduced to 8 million b/d for the rest of 2020 and thereafter to 6 million until May 1, 2022.
President Trump worked the phones on Friday calling President Putin that was followed by a call between Putin and Saudi Crown Prince Mohammed bin Salman.
OPEC+ members understand the urgency to act before Asian markets open. In addition, Aramco had delayed the release of its OSP for another day and may be released after the deal is announced or certainly by Monday.
It does not appear that Trump’s deal with the Mexican President to allow US production declines is part of the deal’s framework. Instead, we are hearing from industry groups, but not confirmed by Administration, that Trump promised no US tariffs on imported oil in order to get the Saudis and OPEC to agree to Mexico’s lower cut.
We will monitor the meeting and hope to have more for you later today after the meeting and new charts showing the cuts by country.
