A snippet from WPAC on Thursday's OPEC+ meeting.
- Crude markets are clearly questioning whether OPEC+ cuts will be enough.
- Even if Saudi Arabia, Russia and other members of OPEC and OPEC+ do cut by as much as 10mb, will that be enough to offset the current demand collapse which is currently estimated to be in excess of 20mb by some forecasters?
- The EIA updated its Short Term Energy Outlook, and slashed both supply and demand forecasts. World crude demand was cut by 18mb for April while the US crude production forecast for the end of this year was cut by 2mb.
- The May-June WTI spread traded at a whopping $5 discount, emphasising the pressure on the very front end of the curve as the focus remains on current physical storage capacity.
And, I really should note that nearly every time I post something on oil output cuts I get comments pointing out what WPAC have done above, that the demand collapse needs to be considered also. Great work to all that do so!