G20 to Discuss Global Crude Production Cut Amid Coronavirus Pandemic

S&P Global Platts reports the G20 group of leading world economies will host a momentous energy ministers’ meeting on April 10, to discuss OPEC-led plans for a global crude production cut accord aimed at shoring up an oil market crushed by the Coronavirus pandemic. The meeting, to be held via webinar, will “foster global dialog and cooperation to ensure stable energy markets and enable a stronger global economy,” the G20 said in a statement April 7.

OPEC, Russia, and nine other allies plan a summit the day prior to work out production cuts that could take as much as 10%-15% of crude supply off the market. However, delegates have said commitments for a deal have yet to be clinched.

The alliance, known as OPEC+, is also hoping to convince other key oil producers, including the U.S., Canada, Brazil, and Norway, to participate in the deal. Saudi Arabia, OPEC’s largest producer and de facto leader, holds the G20’s rotating presidency for this year.

The International Energy Agency, which largely represents oil-consuming nations, has been pushing for the G20 to be a venue for expanded oil talks as the negotiations picked up steam this week, noted S&P Global Platts.

“We need solidarity at this time to urgently bring stability to the world economy and to support millions of jobs,” said Fatih Birol, IEA executive director, in a tweet April 7. He has said the continued crash in oil prices could spark an economic calamity if unchecked.

SOURCE: The Weekly Propane Newsletter, April 9, 2020. Subscribers receive all the latest posted and spot prices from every major terminal and refinery around the U.S., including a center spread of posted prices with hundreds of postings completely updated and delivered to inboxes weekly, along with market analysis, insightful commentary, and much more.