RE: Oil price is up 25%2 Apr 2020 20:07
The markets will over-react to anything that looks like it might be good news at the moment, so the POO might indeed rise again tomorrow along with O&G companies SPs, but I can't believe either Russia or Saudi Arabia will drop anything like 10mb, let alone 15mb. If they do, their revenue streams will really crash. SA might feasibly drop from 12M bpd (which they're only just in the process of expanding to) to say 9, but Russia will never drop by more than 1M bpd in my view..... so where does the other 6M bpd come from?. US, rest of OPEC ?. And whatever the decrease in production they might agree, don't forget there will still be more oil being pumped than there is demand.