OPEC and Russia agreed on April 9 to make deep cuts to oil production, ending a weeks-long market-share war that put further pressure on prices already reeling from the biggest demand collapse in history.

But the market reaction was punishing after details of the proposal—which by 9 p.m. in Vienna had not yet been formally agreed by OPEC ministers—emerged.

Global benchmark Brent reversed a near 11% rally to close down 4% at $31.48 a barrel. Traders doubted the cuts would make up for the fall in demand resulting from the coronavirus pandemic and questioned whether non-OPEC producers would contribute.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access
Need more than one account? See Group Subscription options