Representatives said OPEC+ will meet on the 6th to discuss production cuts, and oil prices turned from falling to rising during the session

During the Asian trading session in Japan, due to the rumors and “rumor-refuting” remarks of all parties, the market’s confidence that oil-producing countries can hold an emergency meeting in the short term and reach an agreement on production reductions to maintain the stability of the energy market has led to the international Crude oil futures contracts fell under pressure during the Asian session, giving up gains since yesterday. By the end of the Asian market, WTI’s maximum drop after the opening of the day once exceeded 6%, and Brent’s maximum drop after the day’s opening once exceeded 5.5%.
However, as an OPEC representative made a statement at the end of the Asian market that OPEC+ oil-producing countries planned to hold an emergency meeting on April 6 and discuss new cooperation at the meeting, the news triggered international oil prices There was a sharp rise in the short term during the session. Among them, the Brent spot contract has continued to rise from the low of $28.25 after the opening to the high of $32.1 after the opening. The increase once rose by more than 6%, and the volatility was as high as more than 12%. The WTI spot contract also rose from a low level of $23.9 after the opening to more than $25.7. It turned from rising to falling in the early trading hours of the Asian market, and once rose by more than 2%.
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[Azerbaijan Oil Minister: OPEC+ meeting is planned to be held on April 6]
On April 3, Azerbaijan’s Energy Minister spoke at the end of the Asian market Said: OPEC+ is preparing for an emergency meeting.
According to RIA Novosti, the Azerbaijani Energy Minister stated that the OPEC+ meeting is planned to be held on April 6. OPEC+ plans to discuss new cooperation at the meeting. The meeting will be held via video connection. It is expected that all OPEC member states will Will attend next Monday’s meeting. Other foreign media reported that Russia has not yet confirmed whether it will attend the OPEC+ meeting planned for next Monday.
Later in the morning session of the European market, a satellite news report quoted OPEC sources as saying that OPEC+ will discuss a production cut of 10 million barrels per day at next Monday’s meeting. If the scale of production reduction exceeds 10 million barrels per day, Other non-OPEC+ countries will need to join in the production cuts. In addition, the source also said that some new countries want to join the OPEC+ organization.
[Trump insists that Saudi Arabia and Russia will cut production by more than 10 million barrels]
On April 3, Beijing time, during the early trading hours of the Asian crude oil futures market, U.S. President Trump issued a statement The remarks said that Saudi Arabia and Russia may cut production by more than 10 million barrels per day. He said he hoped that Russia and Saudi Arabia would soon announce an agreement to reduce production by up to 15 million barrels per day, and said that “Russia and Saudi Arabia both want to reach an agreement.”
In addition, Trump said that he had not made any concessions. to get Russia and Saudi Arabia to agree to cut production. In addition, he also mentioned that he would remain open to holding meetings with Iran if it wished.
Trump previously tweeted during early trading in the U.S. market overnight that he had communicated with Russia and Saudi Arabia and that he expected Saudi Arabia and Russia to reach an agreement on their price war as the price war intensified the pain in the crude oil market. , and predicts that the two major oil-producing countries, Saudi Arabia and Russia, will significantly reduce production by 10-15 million barrels. Affected by these remarks, oil prices rose violently in the early trading session of the US market yesterday, with the Brent spot contract once rising by more than 46%, and WTI once rising by more than 34%.
However, this news was quickly “refuted” by many parties. Some Saudi officials said Trump’s remarks about cutting production by 10 million barrels per day or more were exaggerated. The official said that the current best-case scenario is to cut production by 6 million barrels per day. He was not sure how Trump obtained the previous data and was not sure which countries he had in mind to join the production cuts. Kremlin spokesman Peskov also said that Putin has not yet had a phone call with the Saudi crown prince. Another OPEC representative said that Russia and Saudi Arabia have not yet reached an agreement on the scale of any production cuts. In addition, later in the day, a senior U.S. government official said that the United States did not know the details of Saudi Arabia and Russia’s plans to cut oil supplies.
[Trump will meet with oil industry executives on Friday afternoon locally]
On the morning of the 3rd, Beijing time, the U.S. White House issued a statement stating that U.S. President Trump will meet on Monday Friday at 3 p.m. local time (i.e. 3 a.m. Saturday, Beijing time) to meet with oil industry executives.
[Saudi Arabia calls for an emergency OPEC+ meeting]
On April 2, according to the Saudi Press Agency: Saudi Arabia called for an emergency OPEC+ meeting. Saudi Arabia said OPEC+ should seek a fair agreement, and Saudi Arabia said OPEC+ would restore the necessary balance in the oil market.
On the same day, the Saudi Crown Prince had a phone call with US President Trump on oil market issues. According to foreign media reports, if other oil-producing countries join in cooperation, Saudi Arabia will consider reducing oil production to less than 9 million barrels per day. Saudi Arabia wants U.S. producers, Canada, Mexico and other G20 members to join in the production cuts.
An OPEC representative said that Russia and Saudi Arabia have not yet reached an agreement on the scale of any production cuts. Saudi Arabia hopes that non-OPEC+ oil-producing countries will also join the meeting. OPEC’s production cuts require other countries to join in. It has called on oil-producing countries to hold a meeting to “finally reach” an agreement to reduce production.
On the same day, Iraq issued a statement stating that Iraq supported Saudi Arabia’s call for an OPEC+ emergency meeting to restore balance in the oil market and prevent the decline of oil prices. Saudi Arabia considers reducing oil supply to resolve oil price war. Iraq believes that OPEC and OPEC+ will reach a positive agreement at the next meeting.
[Novak: Do not rule out cooperation with OPEC and other oil-producing countriesCooperation]
On April 2, Russian Energy Minister Novak issued a statement saying that the biggest challenge in the energy market is the spread of the new coronavirus. The lockdown measures have had an unprecedented impact on oil prices. Russia’s fuel demand may fall by more than 40% in the coming weeks. Global crude oil demand will fall by 10-15 million barrels per day. Global crude oil demand will fall by 20 million barrels per day in the coming weeks.
Novak expects some countries to cut production, but there will still be a crude oil supply glut. It would be a mistake for Russia to increase crude oil output now. It is not ruled out that oil prices will fall further in the future, and no one is satisfied with the current oil prices. Putin and Trump discussed the oil market, crude demand and the impact of falling prices on Russia and the United States. Had a phone call with the U.S. Secretary of Energy, and both sides shared the same views on the oil market. and the U.S. Energy Secretary agreed on efforts to stabilize the oil market. will continue to cooperate with the United States. There have been no discussions on the oil market with the Saudi oil minister.
Novak said that restarting negotiations with Saudi Arabia is one of the options and does not rule out cooperation with OPEC and other oil-producing countries. OPEC+ on its own cannot improve the situation of falling crude demand. “We hope that global oil demand will rise in a few months,” Novak said.
In addition, he does not believe that other OPEC+ countries will actually increase oil extraction, because oil is currently difficult to sell, and it is currently unrealistic for Russia to expand production. It is reported that Russia will revise the 2020 budget based on an oil price of US$20/barrel.
[The U.S. Department of Energy will establish a strategic petroleum reserve of 47 million barrels in the future]
On April 3, market news showed that the U.S. Department of Energy will establish a strategic petroleum reserve of 47 million barrels in the future. Strategic Petroleum Reserve (SPR). The U.S. Department of Energy expects the first batch of crude oil from the Strategic Petroleum Reserve to be delivered by the end of April to the end of May, depending on producer logistics. The U.S. Department of Energy stated that the strategic petroleum reserve lease involves the exchange of 22.8 million barrels of sweet crude oil. Up to 7.2 million barrels of U.S.-produced sour crude oil will be included in the leasing scope of the Strategic Petroleum Reserve.
[The UAE plans to increase daily crude oil production by 500,000 barrels in April]
On April 3, sources said that the UAE’s Abu Dhabi National Oil Company ADNOC On March 1, it increased crude oil production to 4.03 million barrels per day, and the company’s crude oil production in March was approximately 3.52 million barrels per day.
[Kuwait Oil Minister: Neutral Zone Crude Oil has begun exports]
On April 3, Kuwait Oil Minister said that after a five-year suspension of operations, the third batch of neutral zone oil fields in Saudi Arabia and Kuwait A cargo of crude oil has been exported and will be shipped to the Asian market. The tanker was carrying one million barrels of crude oil.
In addition, Kuwait’s oil minister said he welcomed the invitation to restore balance in the oil market. Support Saudi Arabia’s invitation to a meeting of crude oil exporting countries to rebalance the oil market. Support the proposal of non-OPEC crude oil exporters to join the production reduction agreement. </p