In oil and gas, the decision to not hedge has always been at producers’ own peril. Fewer E&Ps have hedges in place than in prior years, according to a survey, which suggests a difficult path through the recent price collapse.
The meeting is seen as support for stabilizing oil markets.
Analysts, banks cite a return to traffic congestion around the world.
India’s plan is similar to Australia’s.
Excess crude inventories are easing, with refined fuel stocks taking longer as consumption lags.
Companies of all sizes have been coping with lower oil prices caused by a supply-demand imbalance fueled by the global COVID-19 pandemic.
We have to bet on pent-up demand. The recovery appears to be ‘V-shaped’ in most markets. We hope to see that in the energy world as well.
OPEC, Russia and other allies, a group known as OPEC+, are cutting supply by a record 9.7 million barrels per day (MMbbl/d) from May 1 to offset a slump in prices and demand caused by the coronavirus outbreak.