Platts report on where the OPEC+ talks are at, headlining that the 10m barrel/day output cut 'hangs in the balance'
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ADDED - OPEC HAVE JUST ISSUED A STATEMENT SAYING THERE WILL BE NO OUTPUT CUT UNLESS MEXICO JOINS.
- 10 mln barrel/day cut is conditional on Mexico joining
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OK, original post below:
Platts cite unnamed sources for the information.
The current proposed deal is (in summary), according to a text of the agreement seen by Platts:
- 10 million b/d OPEC+ cut for May and June
- then nudged back to 8 million b/d for the rest of 2020
- then down to 6 million b/d for all of 2021 through April 22
There is more detail, but that's it in very brief.
Sources in the OPEC+ talks said Mexico initially agreed to the cut and the coalition was on the verge of finalizing the deal
- but Mexico is not happy with it new quota of 1.353 million b/d, as the country plans to unveil a $13.5 billion energy investment package to help state oil company Pemex raise its production to 2 million b/d by the end of the year.
What's next? Adds Platts:
- The coalition could try to convince Mexico again Friday at a G20 energy ministerial
- With Mexico not the only country needing convincing, the G20 summit promises to be another test of geopolitical wills.
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Friday's G20 meeting is scheduled to begin at 1400 GMT
