MOSCOW (Pakistan Point News / Sputnik - 22nd April, 2020) The actions taken by the OPEC+ group and G20 nations to stabilize the oil market were enacted too late to prevent the recent price crash but will be effective in helping the recovery of oil prices before the crisis caused by the COVID-19 pandemic ends, researchers at the multinational financial services company Citi said in a report on Tuesday.
"The global economic recession brought about by the COVID-19 pandemic will likely slow the pace of oil's eventual recovery but we believe the actions taken by OPEC+ (the group of OPEC members and non-OPEC members including Russia that has been trying to stabilize oil markets since 2016) and by the G20 should accelerate the oil market's recovery before the current global economic slowdown ends," the report read.
The OPEC+ output cut deal, signed on April 12, came too late to mitigate the excess supply caused by the COVID-19 pandemic that has grounded international air travel and reduced economic activity across the world, researchers said.
According to the OPEC+ deal, member nations will reduce crude oil production by 9.7 million barrels per day from May-June. Thereafter, production will be cut by 7.7 million barrels per day until the end of 2020, and by 5.8 million barrels daily from January 2021 until April 2022.
