Russia and Saudi Arabia have called off their brutal price war and are now pushing dozens of major crude producers toward a deal that would slash production.
A marathon video conference between OPEC members and other major energy powers on Thursday ended with a tentative deal to reduce production by 10 million barrels per day in May and June, the deepest cut ever agreed by the world's oil producers.
Despite this. Oil prices dropped on Friday as traders feared that an Opec deal to slash global supplies not offset a historic drop in demand due to the coronavirus outbreak.
The unprecedented reduction of 10% in worldwide crude output had looked all but certain, and Russia said it considered the deal done. But Mexico baulked at the terms, and talks with Saudi Arabia have since failed.
But what I am going to do now is breakdown the details of oil price war country wise
Saudi
Production: 12 million barrels a day (April)
Although state-run Aramco had said it would keep flooding markets with historic levels of oil at least through May as it fights for market share following the breakup of the OPEC+ alliance, Saudi has agreed to cut 3.3 million barrels a day from its current production levels of 12 million barrels per day
Russia
11.29 million barrels a day (March)
Russia had said last Tuesday that they would target a 1 million barrel-a-day cut in any new deal with other key oil producers, on condition the US joins cuts. After the meeting, they agreed to cut 2 million barrels per day from its current production of 10.4 million barrels per day.
US
13 million barrels a day (end-March)
President Donald Trump sent shockwaves through the oil market last week after suggesting on Twitter he’d brokered a deal with Saudi Arabia and Russia to cut production by 10 million to 15 million barrels, sending prices soaring. After the meeting on Friday, he said the U.S. would reduce its oil production to move forward with a tentative deal limiting global output.
But that deal was stalled by Mexico, where President Andrés Manuel López Obrador has been hesitant to cut production levels following campaign promises to boost Mexico’s oil industry.
UAE
3 million barrels a day (March)
The UAE’s Minister of Energy Suhail Al Mazrouei said the decision to cut oil supply will help rebalance the oil market. Prior to the meeting, however, Abu Dhabi National Oil Co. is pumping more than 4 million barrels a day so far in April, according to people with knowledge of the matter. It produced 3.56 million barrels a day in March, one of the people said.
Kuwait
2.67 million barrels a day (March)
The country’s oil production had increased to 3.15 million barrels a day for April. Kuwait's Oil Minister Khaled al-Fadhel. he was optimistic about striking a new deal to counter a sharp drop in demand, estimated by some studies at as high as 25 million bpd, or a quarter of global supplies.
Brazil
3.06 million barrels a day (February)
Petroleo Brasileiro SA is taking the lead among oil majors to go beyond spending cuts and actually curb production in response to the price crash. The Rio de Janeiro-based company will cut oil production by 100,000 barrels a day and will idle high-cost platforms in shallow waters at projects it has been trying to sell
Norway
2.07 million barrels a day (February)
Norway, the biggest oil producer in western Europe, said it would consider cutting output if there was a broad international agreement to curb supply. The Nordic nation, whose oil production is set to grow over the next few years, hasn’t been a part of coordinated international cuts to support prices since 2002. Norway produces less than 2% of global supply.
Canada
5.78 million barrels a day (February)
Alberta Energy Minister Sonya Savage will participate in an OPEC+ call aimed at resolving the global oil price war and will “keep an open mind” on how the province can participate in a solution
Iraq
4.62 million barrels a day (March)
Iraq, OPEC’s second-biggest producer, is optimistic that the meeting of supplier nations planned for April 9 will reach a new deal on oil output. All producers are in the same boat and must cooperate to achieve their common goals
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