OPEC and its allies this weekend agreed to cut production next month by nearly 10 million barrels per day, a move aimed at shoring-up sagging oil prices amid the global response to the novel coronavirus pandemic.
The agreement, led by OPEC's leading member Saudi Arabia, and the organization's chief counterpart, Russia, capped a weekend of furious negotiations involving not only the cartel but the Group of 20. President Trump reportedly helped broker the agreement between the Saudis and the Russians, who had been at odds since Moscow last month declined to renew a production cut agreement with OPEC.
The production cut, about 9.7 million barrels per day, is scheduled to remain in place for two months starting May 1, then begin easing through the summer and fall.
"We have demonstrated that OPEC+ is up and alive," Saudi Energy Minister Prince Abdulaziz bin Salman, referring to OPEC's partnership with Russia and other non-cartel members, told Bloomberg News. "I'm more than happy with the deal."
Non-OPEC nations, especially the developed countries that are part of the G-20, indicated that they will contribute to the agreement by buying oil to fill their countries' petroleum reserves.
Benchmark crude oil prices rose slightly immediately after the agreement was announced Sunday, but they had largely settled to their previous prices by Monday morning. Although the agreement to cut oil production by close to 10 million barrels per day would traditionally amount to an enormous cut, global demand has fallen by as much as 30 million barrels due to the travel restrictions and business shutdowns imposed to slow the spread of COVID-19.
Brent crude, the benchmark for global oil prices and for U.S. gasoline, was fetching about $31 a barrel Monday morning. West Texas Intermediate, the bellwether for U.S. shale oil production, was selling for about $23 a barrel.
Chris Beauchamp, Chief Market Analyst at IG International, joins J.D. Durkin to give analysis on the recent trade truce between the U.S. and China. Watch!
Shan Aggarwal, VP of Corporate and Business Development at Coinbase, discusses the company's acquisitio of Deribit as it heads into the S&P 500. Watch!
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
DJ X, alongside Molly Holder, Senior Director of Product Personalization, takes us inside Spotify's A.I. DJ and how it's the best new way to listen to music.
