Global pact to contain oil price crash takes shape

[Omaha Steve]

Source: AP

By JON GAMBRELL

DUBAI, United Arab Emirates (AP) — The OPEC oil cartel and nations including Russia have agreed to boost oil prices by cutting as much as 10 million barrels a day in production, or a tenth of global supply. More countries, including the United States, were discussing Friday their own cuts in what would be an unprecedented global pact to stabilize the market.

The agreement between OPEC and partner countries aims to cut 10 million barrels per day until July, then 8 million barrels per day through the end of the year, and 6 million a day for 16 months beginning in 2021.

Mexico had initially blocked the deal but its president, Andrés Manuel López Obrador, said Friday that he had agreed with U.S. President Donald Trump that the U.S. will compensate what Mexico cannot add to the proposed cuts.

That paves the way for cuts that experts estimate could reach 15 million barrels a day in all - about 15% of world production. Such a move would be unprecedented both in its size and the number of participating countries, many of whom have long been bitter rivals in the energy industry.



The sun sets behind an idle pump jack near Karnes City, Texas, Wednesday, April 8, 2020. Demand for oil continues to fall due to the new coronavirus outbreak. (AP Photo/Eric Gay)


Read more: https://apnews.com/5cbd700de930cfbdea411e084d976385

[msongs]

1. trump republicans to USA - sorry no cheap gas for you nt

[totodeinhere]

4. We need to keep oil prices at a certain level or our domestic production will suffer.

Of course cheap gas prices would seem attractive but it's more complicated than that.

[customerserviceguy]

5. Exactly

Yes, we'll move beyond fossil fuels, but it will be done gradually. Having Putin and MBS get into a pissing match and destroying the domestic production system is not a good way to get to that eventuality.

Higher oil and gas prices make alternative technologies more feasible. Who would pay $5K extra for a hybrid version of a vehicle with prices like they are today?

[LiberalLovinLug]

6. Yes cheaper consumer prices. No one talks about it from that angle

Its all about getting back as soon as possible to the bloated profit prices for oil and gas companies. And at the same time hand them a trillion+ in relief to make sure they don't skip a beat. That is all besides the usual ongoing subsidies.

Putting aside for a minute we are in the middle of a pandemic, and the fact that we must not drive unnecessarily, many still have to for chores and work. Lets say this price war happened in healthier times. I wonder if anyone has done a study on weighing which benifits workers more, cheaper gas/transportation for our vehicles (which the unfortunate reality is they are mostly all gas powered for now) weighed against whatever extra taxes they could squeeze back the other way from increased bottom lines of those companies. Minus of course the huge subsidies going back to them.

[old guy]

12. +1.

[DENVERPOPS]

13. Don't you think

That the word "Pact" is so much nicer than "conspiracy".......

[sandensea]

2. "agreed with Trump that the U.S. will compensate what Mexico cannot add to the proposed cuts"

Just don't tell the Chumpkins!

[Thunderbeast]

3. Thousands dying every day. Millions unemployed. Everyone in virtual prison.

Trump takes a victory lap for saving the profits of the fossil fuel cartel.

Priorities, People.

[old guy]

11. Yup.

[iluvtennis]

19. Yup + 1. nt

[elias7]

7. There's no demand!

Airlines, cars, cruise ships.

The emphasis on prices, stock markets, industries, just piss me off. There's time for that later. Emphasis should be on medical supplies and resources for health care workers, hospitals so that we can take care of our own people. Bailouts should be going to little people...

[ProfessorGAC]

9. Down 30Million Bbl/Day

That's more than 30% of normal daily demand.
Not sure how cutting 10% of production, taking the daily excess from 30 to million is going to help prices.
This more like a show than a truly productive effort.
Truth is, they're running out of room for the crude. No place to put it.
This move makes rich Texas oil guys think DOLTUS is doing something for them.

[IthinkThereforeIAM]

18. My sentiments, too...

... there is only so much capacity to store the unused oil and gas. This is just putting Scotch® tape on a job that needs Gorilla Tape®. It looks nice for awhile but then...

[Miguelito Loveless]

8. The fool in Mexico believes Trump?

The stupidity of people staggers me.

[ace3csusm]

10. socialism for our us oil companies

Guess capitalism isn't good for them now need to prop them up, they just cant compete with rest of the world now...SAD

[cstanleytech]

14. So Trump wants people in the US to pay higher gas prices before an election and during a major

economic crash? I wonder how the Republicans will try to spin this off as being good to the voters when said voters might be out of the job and worrying how they are going to pay their rent.

[Mr.Bill]

15. At the rate things are going,

I figure they will need to give out about ten trillion dollars in free money to get the stock market back to where it was a few months ago.

[Lancero]

16. Funny, remember when we used to consider price fixing illegal?

Now we've got people even here applauding it...

[turbinetree]

17. So the skies are little bluer, the particle matter is less like the smog,

and we can actually see mountains one hundred miles away, and there are not vapor trails in the air.................who should I cheer for...............my planet, not some oil and gas company, that gets tax breaks to make things dirty.................