Trump says OPEC+ looking to cut 20 million bpd, not 10 million

[Eugene]

Okay folks, does anybody here see this as anything but market manipulation?

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Source: Reuters

BUSINESS NEWS APRIL 13, 2020 / 9:47 AM / UPDATED 12 MINUTES AGO

Trump says OPEC+ looking to cut 20 million bpd, not 10 million

WASHINGTON (Reuters) - U.S. President Donald Trump said on Monday the OPEC+ group of oil producers is looking to cut output by 20 million barrels per day, double the 10 million barrels agreed to a day earlier.

“Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported,” Trump said on Twitter.

The group, comprising the Organization of the Petroleum Exporting Countries, Russia and other countries, said Sunday it had agreed to reduce output by 9.7 million barrels per day (bpd) for May and June, after four days of talks and following pressure from Trump to arrest the price decline.

Reporting by Doina Chiacu; Editing by Chizu Nomiyama

https://www.reuters.com/article/us-global-oil-usa/trump-says-opec-looking-to-cut-20-million-bpd-not-10-million-idUSKCN21V1A2

[orwell]

1. Trump says...

...whatever bullshit he needs to say to prop up the market.

Even the very loose 10M Bpd cut was very difficult to agree to. There is no enforcement mechanism. The 10M Bpd cuts also require "voluntary cuts" from non-opec producers.

To mitigate the demand drop producers would have to cut more than 20M Bpd. That's not going to happen.

[Amishman]

2. might be possible, overproduction is estimated as high as 30 million right now

We said his 10 million cut tweet was BS a week or two ago, and it seems like it is happening.

When things are oversupplied to this degree, they are going to have to make massive cuts soon just because storage is rapidly filling.

I can see him claiming a political victory for further cuts that will inevitably happen without him as storage is maxed out.