OPEC+ may slash output by 20m bpd, Trump says

Top global oil producers plan to cut production with 20 million barrels a day under the terms of a deal to boost prices, US President Donald Trump said on Monday. Trump's tweet came after OPEC producers and their allies agreed on Sunday to cut production by 9.7m barrels per day, which some analysts feared would not be enough to stem the damage from the combination of plunging demand amid the coronavirus pandemic and a price war between Russia and Saudi Arabia.

"Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported," Trump tweeted. "Thank you to all of those who worked with me on getting this very big business back on track, in particular Russia and Saudi Arabia”, he added.

OPEC members dominated by Saudi Arabia and other producers led by Russia have been negotiating a deal to cut production and support prices for days. After a Sunday videoconference, the top producers agreed to slash daily production by 9.7m  barrels from May, down from the 10m barrels a day envisioned earlier. Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman suggested on Monday further cuts could come when OPEC meets in June.

Calling Trump's tweet "aspirational," analsyt Andy Lipow said the market reaction to the OPEC+ deal has been "muted," as uncertainty remains over the degree to which producers will comply with the cuts. The US benchmark WTI oil price climbed 1.4% in New York after Trump's tweet to $23.10, while Brent rose 0.9% to $31.76.

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