Talks to rescue global energy markets continue after Mexico disagreed with proposed production cuts. On April 11, negotiations between oil-producing countries entered their third day. OPEC representatives said that OPEC+ has not yet resolved Mexico’s reluctance to accept production cuts. There are market rumors that some OPEC+ oil-producing countries have proposed considering removing Mexico from the OPEC+ alliance.
On April 11, senators from U.S. energy-producing states held talks with Saudi officials on oil market issues. A two-hour phone conversation. U.S. Senator Sullivan praised Saudi Arabia for taking the first step to solve the oil market problem and said that now Saudi Arabia needs to take action to reduce production.
On Saturday, news showed that Saudi Aramco once again postponed the announcement of its May official oil selling price (OSP) because negotiations with Mexico on production reduction quotas have not yet reached a conclusion. Sources said that Saudi Aramco will finalize and announce the official oil selling price for May on the 12th local time. Market players said Saudi Arabia may further lower its official oil selling price in May if negotiations between OPEC+ and Mexico break down.
Faced with sluggish oil prices, the market expects the United States, the world’s largest oil producer, to join the ranks of production cuts. However, in the view of market participants, it is not easy for the United States to implement mandatory production cuts, and it is more likely to be completed through market mechanisms.
New coronavirus pneumonia epidemic statistics from Johns Hopkins University show that as of 06:30 on April 12, Beijing time, there were nearly 1.77 million confirmed cases of new coronary pneumonia worldwide. A total of 1,767,855 cases. Among them, a total of 524,903 confirmed cases in the United States; 20,389 deaths. Compared with the data at 06:30 the previous day, there were 32,663 new confirmed cases in the United States; 2,039 new deaths; and 31,066 recoveries.
As the epidemic continues to spread across the United States, U.S. President Trump approved Wyoming as a “major disaster state” for the new crown epidemic on the 11th, which means that all 50 states in the United States and the capital Washington The SAR and the four overseas territories of the U.S. Virgin Islands, Northern Mariana Islands, Guam and Puerto Rico have all entered a “major disaster state”. This is the first time in the history of the United States.
Oil-producing countries continue negotiations
After Mexico disagrees with proposed Negotiations to rescue global energy markets continue after production cuts. On April 11, negotiations between oil-producing countries entered their third day. OPEC representatives said that OPEC+ has not yet resolved Mexico’s reluctance to accept production cuts. There are market rumors that some OPEC+ oil-producing countries have proposed considering removing Mexico from the OPEC+ alliance.
On April 11, senators from U.S. energy-producing states held a two-hour telephone conversation with Saudi officials on oil market issues. Eleven U.S. senators participated in the telephone conversation. Saudi officials participating in the telephone conversation included the Saudi Ambassador to the United States, Saudi Energy Minister Abdulaziz and the Saudi Deputy Minister of Defense. U.S. Senator Sullivan praised Saudi Arabia for taking the first step to solve the oil market problem and said that now Saudi Arabia needs to take action to reduce production.
Market analysts said that under the framework of the previous OPEC+ production reduction agreement, Saudi Arabia set an example and exceeded production reductions. There is currently an expectation that once the new OPEC+ production reduction agreement is reached, Saudi Arabia may Under the new production reduction agreement, the same actions as before will be taken (excessive production reduction).
On April 9, at the OPEC+ emergency meeting led by Saudi Arabia, the oil-producing countries reached a preliminary agreement after nine hours of video negotiations. According to this agreement, production cuts will be divided into three stages. The first phase is from May to June 2020, with a production reduction of 10 million barrels per day; the second phase is from July to December 2020, with a production reduction of 8 million barrels per day; the second phase is from January 2021 to April 2022, Cut production by 6 million barrels per day.
This production reduction agreement is the largest production reduction agreement in the history of the oil market, but because Mexico did not “nod”, the agreement did not take effect. The Mexican Energy Minister said after the meeting that Mexico is only prepared to reduce crude oil production by 100,000 barrels per day in the next two months, with production falling from 1.781 million barrels per day in March to 1.681 million barrels per day. But this is far lower than the 400,000 barrels per day requirement proposed by OPEC+.
Mexican President Lopez said on the 10th that the United States agreed to increase crude oil production cuts to make up for Mexico’s insufficient production reduction, and the two sides will jointly complete the average daily crude oil production reduction of 350,000 barrels. On the same day, U.S. President Trump stated at a press conference at the White House that the United States would help Mexico reduce crude oil production, but the specific details have not yet been finalized. Trump said that he and Lopez discussed this issue on the 9th and the progress was “pleasant”. The two sides will continue to discuss specific implementation details.
However, Mexico’s plan to jointly complete the production reduction quota with the United States met with strong opposition from Saudi Arabia, which insisted that Mexico should reduce production like other OPEC+ members. Market analysts said that Mexican crude oil production has been declining for many years, and the so-called production reduction is just a natural decline in production.
On April 10, the G20 energy ministers held a video conference. Although the meeting went through “overtime,” the meeting statement released in the early morning of April 11, Beijing time, did not include the specific production reductions expected by the market, and Mexico once again became a “spoiler.” The statement said that in response to the COVID-19 epidemic, participants committed to ensuring energy security and stable energy supply. The statement also said that the G20 will establish a short-term task force to oversee the implementation of relevant response measures. The group will work with relevant international organizations to�Energy costs. The announcement said that until market conditions improve, the company will reduce related drilling and completion activities in the Permian Basin in the southern United States and postpone some investment decisions and production activities. ExxonMobil said it will continue to monitor market developments and may implement additional cuts if necessary.
A report released by Baker Hughes on Thursday showed that in the week ended April 9, U.S. drillers reduced the number of active drilling rigs by 58 to 504, a record high of 12 in 2016. lowest level since last month.
U.S. crude oil production has declined recently. The latest weekly production report released by the EIA showed that in the week ending April 3, U.S. crude oil production decreased by 600,000 barrels per day from the previous month to 12.4 million barrels per day.
For the first time in history! All 50 states in the United States have entered a “major disaster state”
Statistics on the COVID-19 epidemic from Johns Hopkins University show that as of 06:30 on April 12, Beijing time , there are nearly 1.77 million confirmed cases of new coronary pneumonia worldwide, with a total of 1,767,855 cases. Among them, a total of 524,903 confirmed cases in the United States; 20,389 deaths. Compared with the data at 06:30 the previous day, there were 32,663 new confirmed cases in the United States; 2,039 new deaths; and 31,066 recoveries.
The cumulative number of confirmed cases in New York State, the epicenter of the epidemic, has exceeded 180,000. New York State Governor Cuomo revealed at a press conference held on the 11th local time that New York State had 783 new deaths in the past day, bringing the total number of deaths to 8,627; the cumulative number of confirmed cases increased by 6% from the previous day, reaching 181,023 cases. Cuomo said the epidemic in upstate New York and the New York City suburbs has stabilized, but is far from over.
As the epidemic continues to spread across the United States, U.S. President Trump approved Wyoming as a “major disaster state” for the new crown epidemic on the 11th, which means that all 50 states in the United States and the capital Washington The SAR and the four overseas territories of the U.S. Virgin Islands, Northern Mariana Islands, Guam and Puerto Rico have all entered a “major disaster state”. This is the first time in the history of the United States.
When a disaster exceeds the response capabilities of state and local governments and requires long-term assistance, the federal government is usually required to authorize a “major disaster state,” which the President of the United States has the authority to approve or deny. . Being approved as a “major disaster state” will receive assistance from the federal government, and local governments can exercise emergency powers to protect life, property and public health after a disaster occurs. </p
