API Welcomes OPEC+ Agreement To Cut Crude Oil Production
“We welcome [the] announcement of an agreement by other producing nations to follow the lead of the global marketplace, and U.S. producers, to reduce supply to align with lower energy demand as result of the pandemic. This is a significant agreement that will foster increased stability in energy markets to the benefit of both American energy consumers and producers. We commend the president’s leadership and his administration’s diplomatic engagement to urge nations to bring global oil supply in line with the lower energy demand as a result of the pandemic.”
He continued, “In the U.S., market conditions have led U.S. producers to reduce U.S. oil production to meet historic drops in demand. While the U.S. today leads the world in daily oil production, oil is produced, refined, used, and traded across the globe, and most of the world’s oil is produced by foreign government owned entities, some of whom announced oil production increases last month just as global energy use was decreasing due to the pandemic.
“Prior to COVID-19, the world demanded 100 million barrels of oil per day for transportation, industrial operations, manufacturing, and byproducts used in every sector of the global economy–from paints and asphalts to makeup and iPhones–and projections show long-term demand for oil and natural gas around the world remain strong. Significant challenges remain in the weeks and months ahead for our sector and nearly every other; however, U.S. oil and natural gas, and the American workers who produce, transport, service, refine, and ship it, will be critical to enabling our economic recovery.”
API represents all segments of America’s oil and natural gas industry. Its more than 600 members produce, process, and distribute most of the nation’s energy. The industry supports 10.9 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency, and sustainability.
SOURCE: The Weekly Propane Newsletter, April 16, 2020. Subscribe to receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to your inbox each week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary and much more.
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