Brouillette releases remarks before G20 meeting
- Must end oil price drop to stabilize markets
- All nations must help reduce the oil surplus
- US oil output will be down about 2 million barrels per day by year-end
- Models show US output cuts could reach 3 million barrels per day
- Disappointed OPEC+ deal hasn't happened yet
- Recent failure of Saudi Arabia and Russia to agree to supply cut is extremely disappointing
The problem with US production cuts is that there is no centralized spigot to turn on or off, but a collection of oil producers running their own independent business. However, they will react to the price cuts, lowering the supply. The weekly Baker Hughes oil rig count fell yesterday to the lowest level since December 2016.
