GS say the OPEC+ G20 production cut is too little too late, and the bank sees downside risk to its $20/barrel price forecast
- “Today’s agreement leaves the voluntary cuts as still too little and too late to avoid breaching storage capacity, ensuring that low oil prices force all producers to contribute to the market rebalancing”
- no voluntary cuts could be large enough to offset the 19m b/d average April-May demand loss due to the coronavirus
- OPEC+ voluntary cut is an only actual 4.3m b/d reduction in production from 1Q 2020 levels
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Oil traded higher initially upon market reopen for the week, gave it all back and turned negative and is now not much changed from late last week levels.